XN000022-1972-11-15 — Page 5

Daily Information Bulletin 新聞公報 All

5

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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