XN000022-1973-01-03 — Page 2

Wednesday, January 3, 1973

SECURITIES ADVISORY COUNCIL TO BE FORMED

To Help Curb Undesirable Practices In Exchanges

The Government will establish a Securities Advisory Council and create

a post of Commissioner for Securities to help the stock exchanges curb question-

able practices.

Announcing this at the Legislative Council this afternoon, the Financial

Secretary, the Hon. C.P. Haddon-Cave, said that the Advisory Council would be

set up on an administrative basis, subject to the voting of the necessary funds

by the Finance Committee.

The Government's decision, he said, had been taken "to anticipate the

enactment of legislation providing for a statutory Securities Council and

Commissioner for Securities."

The Advisory Council would consist of seven members, of whom one would

be an independent Chairman.

Four would be unofficial members representing various sectors of the

business community and the remaining two would be members of the public service,

the Commissioner for Securities and the Registrar General.

The appointment of these members, Mr. Haddon-Cave said, was likely to

be made by the Governor within the next few days.

The Financial Secretary pointed out that over the last 12 months, both

turnover and prices at the four stock exchanges in Hong Kong had risen to new

and unprecedented heights.

"But, perhaps