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Wednesday, November 15, 1972
NEW BILL TO REGULATE STOCK EXCHANGES
The following is the full text of the reply by the Financial Secretary
to a question on stock exchanges by the Hon. P.C. Woo in Legislative Council
today?
"The Government cannot at present prevent the establishment of any
more stock exchanges in Hong Kong. The fact is no statutory powers exist to
forbid the formation and operation of stock exchanges, but only to withhold
recognition under Section 2A of the Companies Ordinance.
"Under the Bill dealing with securities, which I hope to introduce
into this Council within a few months, only those stock exchanges approved by
the Financial Secretary will be allowed to operate in Hong Kong, after the Bill
goes into force. I intend to approve only those which are recognized for the
purposes of Section 24 of the Companies Ordinance. It follows that any exchange
which is not recognized cannot continue to operate; and any new stock exchange
which may be established between now and the date of the enactment of the
Securities Bill will not be recognized. In other words, it is our intention
to restrict the number of exchanges allowed to operate and this will be coupled
with a system of registration of all dealers.
"Having said this and lest there be any misunderstanding, may I
conclude by reaffirming the Government's view that there is scope for improving
the organisational arrangements and procedures of the existing stock exchanges.
"The Securities Bill is designed, among other things, to achieve this".
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