XN000022-1986-10-06 — Page 2

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MONDAY, OCTOBER 6, 1986

SIR EDWARD: INTEGRITY IMPORTANT TO CONTINUED DEVELOPMENT

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IT IS IMPORTANT TO THE CONTINUED DEVELOPMENT OF THE SECURITIES INDUSTRY IN HONG KONG THAT THE INTEGRITY OF THE MARKET SHOULD BE MAINTAINED, THE GOVERNOR, SIR EDWARD YOUDE, SAID TODAY (MONDAY).

+THIS MUST BE ACHIEVED THROUGH CONTINUING CLOSE CO-OPERATION BETWEEN ALL THOSE ASSOCIATED WITH THE SECURITIES INDUSTRY, WHETHER THEY BE IN THE GOVERNMENT, MEMBERS OF THE STOCK EXCHANGE OR THE FUTURES EXCHANGE OR OTHERS PROFESSIONALLY INVOLVED, HE SAID.

SIR EDWARD WAS SPEAKING AT THE GRAND OPENING OF THE STOCK EXCHANGE OF HONG KONG.

HE SAID THAT THERE MUST BE A HIGH DEGREE OF RESPONSIBLE SELF REGULATION, BACKED UP BY LEGAL AND COMMERCIAL ARRANGEMENTS WHICH COULD COMMAND INTERNATIONAL RESPECT.

THIS WOULD ALLOW THE RIGHT BALANCE TO BE STRUCK BETWEEN INVESTOR PROTECTION AND FAIR PLAY IN THE MARKET ON ONE HAND AND THE LEGITIMATE EXPLOITATION OF BUSINESS AND INVESTMENT OPPORTUNITIES ON THE OTHER.

SIR EDWARD SAID THAT THE SECURITIES INDUSTRY, BEING AN INTEGRAL AND IMPORTANT PART OF LOCAL FINANCIAL SYSTEM, HAD PLAYED A CONSTRUCTIVE ROLE IN HONG KONG'S DEVELOPMENT AS AN INTERNATIONAL FINANCIAL CENTRE.

IN ADDITION TO STRONG DOMESTIC INTEREST, THE STOCK MARKET IN RECENT YEARS HAD ATTRACTED INCREASING INTEREST FROM INSTITUTIONAL INVESTORS ALL OVER THE WORLD.

+THEY HAVE BEEN ENCOURAGED BY THE IMPRESSIVE RATES OF RETURN AVAILABLE, THE DYNAMISM AND RESILIENCE OF HONG KONG'S ECONOMY, THE STABILITY IN THE EXCHANGE VALUE OF THE HONG KONG DOLLAR FOLLOWING ITS LINK WITH THE U.S. DOLLAR IN 1983 AND THE SINO-BRITISH JOINT DECLARATION ON THE FUTURE OF HONG KONG, SIR EDWARD SAID.

HE SAID HE NOTED WITH PLEASURE OF THE RECENT ACCOLADE ACCORDED TO THE HONG KONG EXCHANGE OF MEMBERSHIP OF THE FEDERATION INTERNATIONALE DES BOURSES DE VALEURS.

+THIS IS A FITTING ACKNOWLEDGEMENT OF THE HONG KONG EXCHANGE'S STANDING IN THE INTERNATIONAL SCENE,+ HE SAID.

SIR EDWARD CONGRATULATED ALL THOSE WHO HAD BEEN INVOLVED IN BRINGING THE UNIFIED EXCHANGE INTO BEING.

HE DESCRIBED THE TRADING HALL AS MAGNIFICENT, AND SAID THAT ITS USE OF ADVANCED TECHNOLOGY APPLICABLE TO BUSINESS, COMMERCE AND COMMUNICATIONS WOULD BE ANOTHER STIMULUS TO THE DEVELOPMENT OF AN EFFICIENT SECURITIES MARKET.

/+GIVEN HONG