XN000022-1987-01-14 — Page 15

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WEDNESDAY, JANUARY 14, 1987

+THEY SHOULD ALSO BE REGISTERED WITH THE SECURITIES COMMISSION AS LICENSED DEALERS, OPERATING UNDER SUPERVISION TO ORGANISE VENTURE CAPITAL FOR SMALL BUSINESS AS WELL AS TO PROVIDE ADVICE TO INTERESTED INVESTORS,+ HE SAID.

MR CHAM SAID THAT NATURALLY THE RISK OF INVESTING IN THESE COMPANIES WOULD BE HIGH BUT THE JUDGEMENT OF WHETHER IT WAS AN APPROPRIATE INVESTMENT SHOULD BE LEFT TO THE INVESTORS WITH THE ASSISTANCE OF PROFESSIONAL ADVICE FROM VCID'S.

AS FOR COMPANIES WHICH REQUIRED PUBLIC OFFERING FINANCING, MR CHAM SAID THE FUNCTIONS OF AN OTC MARKET WOULD HELP TO TRANSFER RISK TO THE MARKET PLACE AND WAS A PROVEN MECHANISM ELSEWHERE IN THE WORLD.

HOWEVER, HE CAUTIONED THAT THE RISK INVOLVED IN INVESTING IN THESE STOCKS MIGHT BE HIGH EVEN THOUGH THE RETURN ON INVESTMENT MIGHT BE SUBSTANTIAL.

THE INVESTING PUBLIC SHOULD BE UNDER NO IMPRESSION THAT IT WOULD BE LIKE INVESTING IN BLUE CHIP STOCKS.

+THUS, THE INVESTOR MUST ACT WITHIN HIS OWN CAPACITY AND NOT TAKE RISKS WHICH HE CANNOT AFFORD, HE ADDED.

+FINE TUNE+ NON-INTERVENTION POLICY

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THERE IS STILL MUCH ROOM FOR THE GOVERNMENT TO +FINE TUNE+ ITS POLICY OF POSITIVE NON-INTERVENTION IN INDUSTRY WHICH HAS BEEN ONE OF THE FUNDAMENTALS OF HONG KONG'S ECONOMIC SUCCESS.

THIS WAS SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) BY THE HON HILTON CHEONG-LEEN DURING THE ADJOURNMENT DEBATE ON THE DEVELOPMENT OF INDUSTRY.

MR CHEONG-LEEN SAID THE POLICY HAD ENABLED MANUFACTURERS TO ADAPT MORE QUICKLY THAN THEIR REGIONAL COMPETITORS TO CHANGES IN EXPORT MARKETS.

HOWEVER, THERE WERE AREAS WHERE +FINE TUNING+ OR STRENGTHENING COULD BE CONSIDERED.

/FOR EXAMPLE,