XN000022-1987-09-21 — Page 6

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MONDAY, SEPTEMBER 21, 1987

LOOKING AHEAD TO

1988, MR JACOBS SAID DOMESTIC LIKELY TO REMAIN

DEMAND IS AT A HIGH LEVEL AND HONG KONG'S CONTINUE TO BE INFLUENCED BY FORCES LARGELY "BEYOND OUR CONTROL".

EXPORTS WILL

"APART FROM THE LEVEL OF CONSUMER DEMAND IN OUR EXPORT MARKETS, MOVEMENTS IN EXCHANGE RATES AND OUR CONTINUED ACCESS TO THESE ARE ALSO

MARKETS IMPORTANT FACTORS. ANY FURTHER INTENSIFICATION PROTECTIONIST MEASURES,

OF PARTICULARLY IN THE UNITED AFFECT THE PROSPECTS FOR HONG KONG'S EXPORTS AND TRADE GENERALLY,

STATES, WILL

SAID.

門

HE

STRENGTHENED LEGISLATION TO CURB INSIDER DEALING

THE GOVERNMENT IS TAKING STEPS TO STRENGTHEN THE PRESENT LEGISLATION AGAINST INSIDER DEALING TO BETTER PROTECT THE INVESTING PUBLIC, THE SECRETARY FOR MONETARY AFFAIRS, MR DAVID NENDICK, SAID TODAY (MONDAY).

SPEAKING AT THE HONG KONG MANAGEMENT ASSOCIATION CONFERENCE 1987, MR NENDICK SAID THE OPTIONS NOW UNDER CONSIDERATION BY THE GOVERNMENT WERE EITHER STRENGTHENING THE SANCTIONS AGAINST INSIDER DEALERS UNDER THE EXISTING TRIBUNAL SYSTEM OR MAKING INSIDER DEALING A CRIMINAL OFFENCE.

"BOTH ALTERNATIVES HAVE THEIR ADVANTAGES AND DISADVANTAGES IT WILL NOT BE EASY TO DECIDE WHICH IS THE RIGHT WAY FORWARD.

AND

"BUT I MUST STRESS THE GOVERNMENT'S DETERMINATION то MAINTAIN A FAIR REGULATORY FRAMEWORK AND A STABLE FINANCIAL ENVIRONMENT THAT GIVE INDIVIDUALS AND BUSINESS CONFIDENCE IN THE FUTURE AND THE INCENTIVE TO CONTINUE TO INVEST IN HONG KONG," HE SAID.

MR NENDICK SAID THE GOVERNMENT WAS IN THE PROCESS OF UPDATING HONG KONG'S INVESTMENT LEGISLATION AS SUPERVISION AND REGULATION MUST EVOLVE IN LINE WITH DEVELOPMENTS IN THE MARKET PLACE.

HE SAID ONE EXAMPLE WAS THE WHITE BILL ON DISCLOSURE OF SHAREHOLDINGS, PUBLISHED IN JUNE THIS YEAR FOR PUBLIC CONSULTATION, WHICH REQUIRED SUBSTANTIAL SHAREHOLDERS, DIRECTORS AND CHIEF EXECUTIVES OF LISTED COMPANIES TO DISCLOSE PARTICULARS OF THEIR 9HAREHOLDINGS.

"THIS REQUIREMENT WILL REVEAL EXACTLY WHO CONTROL THESE COMPANIES AND WILL MAKE INSIDER TRADING MORE DIFFICULT AND CREEPING TAKEOVERS HARDER TO CONCEAL," HE SAID.

/IT WAS