XN000022-1989-02-16 — Page 2

THURSDAY, FEBRUARY 16, 1989

ASSURANCE ON DEVELOPING HK AS INTERNATIONAL FINANCIAL CENTRE

THE GOVERNMENT IS

KONG'S POSITION AS

INTERNATIONAL

AN

INVESTORS INTEGRITY OF THE MARKETS.

AND DEVELOP HONG CENTRE WHERE AND EFFICIENCY

DETERMINED то MAINTAIN

INTERNATIONAL FINANCIAL HAVE CONFIDENCE IN THE

THE ASSURANCE WAS GIVEN BY THE SECRETARY FOR MONETARY MR DAVID NENDICK, THIS (THURSDAY) EVENING WHEN ADDRESSING THE RIM EXECUTIVE BANKERS SEMINAR.

AFFAIRS, PACIFIC

MARKET

MARKET

FINANCIAL

HE SAID THAT WITHIN 18 MONTHS OF THE OCTOBER 1987 STOCK CRISIS, VIRTUALLY ALL THE MAJOR REFORMS TO THE REGULATORY AND

WERE WHICH

ENSURE REQUIRED TO

HONG KONG'S STRUCTURES MARKETS MATCH UP TO MODERN EXPECTATIONS WOULD BE IN PLACE.

WHICH SAFEGUARDS WHICH

HE SAID.

THE OVER-REGULATION "WHILST WE ARE DETERMINED TO AVOID SEEMS TO HAVE OCCURRED ELSEWHERE, THERE ARE FURTHER WE ARE IN THE PROCESS OF PUTTING IN PLACE TOO,

REQUIRING LISTED

HE POINTED OUT THAT LEGISLATION WAS PASSED LAST JULY MAJOR SHAREHOLDERS, DIRECTORS AND CHIEF EXECUTIVES OF PUBLICLY COMPANIES TO DISCLOSE THE EXTENT OF THEIR BENEFICIAL HOLDINGS.

THIS

ALSO

ENABLE

LISTED

WOULD

COMPANIES BENEFICIAL OWNERSHIP OF ANY SHARE HOLDING, HE ADDED.

"WE ARE ALSO PLANNING

SANCTIONS

TO

DISCOVER

THE

THE

то LEGISLATION

SUBSTANTIALLY

AGAINST INSIDER DEALERS EXISTING TRIBUNAL SYSTEM, HE SAID.

ΤΟ INTRODUCE

INCREASE UNDER OUR

+

FIRMLY OF THE VIEW THAT MR NENDICK SAID THE GOVERNMENT WAS INSIDER DEALING UNDERMINED THE FAIRNESS OF THE MARKET.

TO SEE IDENTIFIED

"THE GOVERNMENT IS THEREFORE DETERMINED TO DO ITS BEST THAT IT DOES NOT OCCUR OR THAT IF IT DOES THE CULPRITS ARE AND BROUGHT TO BOOK,' HE STRESSED.

"

YEAR "WE AIM TO BRING BOTH MEASURES INTO FORCE THIS

AND HAS NEW SECURITIES AND FUTURES COMMISSION IS IN BEING RESOURCES TO ENSURE PROPER ENFORCEMENT," MR NENDICK SAID.

RECOUNTING THE MEASURES

WHEN THE AVAILABLE

TAKEN BY THE GOVERNMENT ΤΟ REMEDY

MARKET CRASH, MR NENDICK SHORTCOMINGS REVEALED BY THE STOCK

NOTED THRUST OF THE THAT THE GOVERNMENT HAD PROMPTLY ACCEPTED THE GENERAL SECURITIES REVIEW COMMITTEE'S RECOMMENDATIONS PUBLISHED IN JUNE 1988.

OF THE NEW WHILE THE GOVERNMENT HAD AGREED TO THE SETTING UP

EXCHANGE HAD PROMPTLY SECURITIES AND FUTURES COMMISSION, THE STOCK

ΤΟ RECOMMENDATIONS RELATING ACCEPTED

FUNDAMENTAL REVISIONS TO ITS CONSTITUTION AND INTERNAL MANAGEMENT.

THE

COMMITTEE'S

THANKS TO