XN000022-1983-04-19 — Page 2

TUESDAY, APRIL 19, 1983

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WORLD ATTENTION ON HK GOLD MARKET

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THE HONG KONG GOLD MARKET IS NOW PROBABLY THE THIRD LARGEST IN THE WORLD, THE DEPUTY COMMISSIONER FOR SECURITIES AND COMMODITIES TRADING, MR DEREK MURPHY, SAID TODAY (TUESDAY).

MR MURPHY WAS ADDRESSING THE EIGHTH INTERAMERICAN CONFERENCE OF SECURITIES COMMISSIONS AND SIMILAR ORGANISATIONS BEING HELD IN QUITO, ECUADOR FROM APRIL 17 TO 23.

EVEN THOUGH SYDNEY AND TOKYO ARE THE FIRST MAJOR MARKETS TO OPEN IN THE ASIAN-PACIFIC REGION, IT IS THE HONG KONG GOLD MARKET ON WHICH THE EYES OF THE WORLD ARE FOCUSED. EVERY MONDAY MORNING FOR THE FIRST PRICE FIXING AFTER THE WEEKEND, MR MURPHY POINTED OUT.

INTERNATIONAL GOLD TRADING IS ONE OF THE ASPECTS HE TOUCHED ON IN HIS DISCUSSION OF HONG KONG AS A GLOBAL FINANCIAL CENTRE AND AS A BASE FOR INVESTMENTS GENERALLY.

MR MURPHY CONCEDED THAT AN +OVER-ZEALOUS BANKING SECTOR IN A HIGHLY COMPETITIVE ENVIRONMENT CONTRIBUTED IN LARGE MEASURE TO SOME OF THE PROBLEMS ASSOCIATED WITH THE FALTERING PROPERTY MARKET IN 1981-82.

BUT HE STRESSED THAT THE INSTITUTIONAL FRAMEWORK OF HONG KONG'S FINANCIAL SYSTEM REMAINED FUNDAMENTALLY SOUND.

+ INDEED, IT MIGHT BE ARGUED THAT THE FAILURE OF A SMALL HANDFUL OF REGISTERED DEPOSIT-TAKING COMPANIES WILL, IN THE LONGER TERM, BE A SALUTARY REMINDER THAT ONE OF THE VIRTUES OF A LARGELY FREE-ENTERPRISE SYSTEM IS THAT THE FAILURE OF THE WEAKEST LINK MAY RESULT IN A STRONGER CHAIN, HE ADDED.

THE TERRITORY'S HIGH ADAPTABILITY IN RESPONDING TO CHANGING CIRCUMSTANCES, IN CREATING NEW FINANCIAL PRODUCTS AND IN OPENING NEW MARKETS WAS ALSO ONE DIMENSION WHICH +AUGURS WELL FOR INTERNATIONAL RECOGNITION OF HONG KONG AS A MAJOR CENTRE, ABLE TO RESPOND POSITIVELY AND EFFECTIVELY TO OPPORTUNITIES AS THEY ARISE,+ MR MURPHY SAID.

IN VIEW OF THE SIGNIFICANT INTERNATIONAL FLAVOUR OF SHARE MARKET TRANSACTIONS, MR MURPHY SAW A GROWING NEED FOR WORLD COOPERATION IN SURVEILLANCE AND MARKET INTELLIGENCE.

+1 PERCEIVE IT TO BE NOT ONLY OUR RIGHT, BUT OUR DUTY, TO THE INTERNATIONAL INVESTOR, BOTH ACTUAL AND POTENTIAL, FOR THE SECURITIES MARKET REGULATORS IN HONG KONG TO TAKE ALL NECESSARY STEPS TO ASSIST INTERNATIONAL REGULATORY AUTHORITIES TO THE MAXIMUM EXTENT POSSIBLE, SUBJECT ONLY TO OVERRIDING LEGAL RESTRAINTS IN THE DISSEMINATION OF SECRET INFORMATION, HE SAID.

ON THE SINO-BRITISH TALKS OVER HONG KONG'S FUTURE, YE MURPHY EXPRESSED OPTIMISM THAT AN +ACCEPTABLE, PRAGMATIC SOLUTION WILL BE FOUND TO ENSURE THE LONG-TERM GROWTH AND PROSPERITY OF HONG KONG, AND THAT INVESTMENT IN THE TERRITORY WILL BE SAFEGUARDED.+