XN000022-1988-07-20 — Page 62

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WEDNESDAY, JULY 20, 1988

GOVT AIMS TO ENSURE HK'S FUTURE AS FINANCIAL CENTRE

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THE HONG KONG GOVERNMENT'S AIM IS TO ENSURE THAT BY 1997, IN THE FINANCIAL SECTOR AS ELSEWHERE, HONG KONG HAS A SYSTEM WHICH WILL INSPIRE INTERNATIONAL CONFIDENCE AND STAND THE TEST OF TIME, THE GOVERNOR, SIR DAVID WILSON, SAID IN LONDON TODAY (WEDNESDAY).

SIR DAVID SAID THIS IN A SPEECH TO REPRESENTATIVES OF THE BUSINESS AND FINANCIAL COMMUNITY AT THE STATIONERS HALL.

HE POINTED OUT THAT THE GOVERNMENT'S REACTION ΤΟ THE STOCK MARKET COLLAPSE LAST OCTOBER; ITS RESPONSE TO THE REPORT OF THE SECURITIES REVIEW COMMITTEE; AS WELL AS THE ACTIONS THAT IT WAS TAKING IN OTHER AREAS, SHOWED THE IMPORTANCE IT ATTACHED ΤΟ ENSURING ᎢᎬᎪᎢ . IN PRACTICE AND PROCEDURE, HONG KONG MEETS INTERNATIONALLY-RECOGNISED STANDARDS.

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ON THE OCTOBER CRASH DURING WHICH THE HONG KONG STOCK MARKET CLOSED FOR FOUR DAYS, SIR DAVID SAID THE CRASH REVEALED PROBLEMS THAT NEEDED TO BE DEALT WITH QUICKLY AND FIRMLY.

HE RECALLED THE APPOINTMENT OF MR IAN HAY DAVISON TO SECURITIES REVIEW COMMITTEE TO LOOK INTO THE OPERATION AND OF THE HONG KONG MARKETS AND OF ITS REGULATORY SYSTEM.

HEAD THE MANAGEMENT

THE COMMITTEE PRODUCED ITS REPORT, WHICH CONTAINED SOME 160 RECOMMENDATIONS, EARLY LAST MONTH.

SIR DAVID SAID THE ANALYSIS OF THE REPORT WAS CRISP; THE RECOMMENDATIONS WERE WELL THOUGHT OUT AND THE REPORT PULLED NO

PUNCHES.

"KEY ISSUES ARE THE RECOMMENDATIONS FOR THE REORGANISATION OF THE STOCK AND FUTURES EXCHANGES," HE SAID.

THE REPORT ALSO RECOMMENDED THE ESTABLISHMENT OF A REGULATORY AUTHORITY INDEPENDENT OF THE GOVERNMENT AND ESTABLISHMENT OF A CENTRAL CLEARING AND SETTLEMENT SYSTEM SECURITIES.

NEW

THE

FOR

THE GOVERNMENT HAD ALREADY ANNOUNCED ACCEPTING THE MAIN

MAIN THRUST OF THE RECOMMENDATIONS AND WAS MOVING TO IMPLEMENT THEM, HE SAID.

AS A RESULT OF THIS, SIR DAVID SAID MR ROBERT OWEN WAS APPOINTED AS A SPECIAL CONSULTANT TO ADVISE ON THE ESTABLISHMENT OF THE NEW REGULATORY AUTHORITY THE SECURITIES AND FUTURES COMMISSION.

"OUR AIM IS TO HAVE THE NEW COMMISSION IN PLACE BY THE END OF THIS YEAR, COMPLETE WITH THE RESOURCES AND LEGISLATIVE TEETH NEEDED FOR IT TO DO ITS WORK PROPERLY," SIR DAVID EXPLAINED.

/MEANWHILE, BOTH