XN000022-1989-10-26 — Page 12

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THURSDAY, OCTOBER 26, 1989

THE SFC BELIEVED THAT THE

WAIVER FOR NEW FUTURES CONTRACTS WOULD SEND A SIGNAL OF SUPPORT TO THE MARKET AND ITS PARTICIPANTS ENCOURAGE MARKET DEVELOPMENT.

THE

"THE ADMINISTRATION, HAVING CONSIDERED

AND

THE MARKET REVIEW BY

SFC, SUPPORTS ITS RECOMMENDATION ON THE GROUNDS THAT THE INTRODUCTION OF THE LEVY IS IN LINE WITH THE FUNDING PRINCIPLES FOR THE SFC AND THE LEVEL OF THE LEVY IS BROADLY COMPARABLE TO THAT APPLIED TO THE SEHK IN TERMS OF THE RELATIONSHIP IT BEARS TO TOTAL TRANSACTIONS COSTS," THE SPOKESMAN SAID.

"WE NOTE THE CONCERN EXPRESSED BY THE HKFE ABOUT HIGH TRANSACTION COSTS ON FUTURES CONTRACTS. THESE, HOWEVER, RESULT LARGELY FROM THE 330 LIFEBOAT LEVY ON

THE HANG SENG INDEX FUTURES CONTRACTS WHICH IS FOR REPAYING THE LIFEBOAT FACILITY ACCORDING ΤΟ TERMS PREVIOUSLY AGREED, HE SAID,

"

THE

WE ALSO NOTE THAT WITH THE INTRODUCTION OF THE LEVY, CONTRIBUTION OF THE HKFE WOULD STILL BE VERY MUCH LESS THAN THE COST OF RESOURCES ALLOCATED BY THE SFC TO OVERSEE THE EXCHANGE, HE ADDED.

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THE SFC ESTIMATED THAT THE LEVY WOULD GENERATE $3 MILLION PER ANNUM, ACCOUNTING FOR TWO PER CENT OF THE SFC BUDGET ($140 MILLION 1989 PRICES EXCLUDING THE START-UP COST).

AT

CONSUMER PRICE INDEXES FOR SEPTEMBER PUBLISHED

THE CENSUS AND STATISTICS DEPARTMENT PUBLISHED THE CONSUMER PRICE INDEXES FOR SEPTEMBER

TODAY 1989.

(THURSDAY ›

THE CPI(A)AND CPI(B) (OCT. 84/SEP. 85 = 100) FOR SEPTEMBER 1989 WERE 132.6 AND 131.9 RESPECTIVELY, REPRESENTING INCREASES OF 10.1 PER CENT AND 9.9 PER CENT RESPECTIVELY OVER SEPTEMBER 1988.

THESE RATES OF INCREASE WERE SLIGHTLY HIGHER THAN THOSE RECORDED IN AUGUST 1999, WHICH WERE 9.9 PER CENT AND 9. 7 PER CENT RESPECTIVELY. BUT THEY WERE LOWER THAN THE CORRESPONDING RATES OF INCREASE RECORDED IN JUNE (11.0 PER CENT AND 10.3 PER CENT AND IN JULY (10.3 PER CENT AND 10.0 PER CENT).

↑

COMPARING SEPTEMBER WITH AUGUST 1989, THE CPI(A) INCREASED BY 1.5 PER CENT AND THE CPI(B) BY 1.3 PER CENT, LARGELY BECAUSE OF HIGHER PRICES OF FRESH VEGETABLES, HIGHER CHARGES FOR MEALS RESTAURANTS AND OTHER EATING PLACES, HIGHER RENTS FOR SOME PUBLIC PRIVATE HOUSING UNITS, AND HIGHER SCHOOL FEES AND TEXTBOOK PRICES.

IN

AND

THE AVERAGE CPI(A) AND AVERAGE CFI (B) FOR THE 12 MONTHS ENDED SEPTEMBER 1989, AT 126.4 AND 126.1 RESPECTIVELY, WERE 9.6 PER CENT AND 9 .3 PER CENT RESPECTIVELY HIGHER THAN THE AVERAGE FOR THE 12 MONTHS ENDED SEPTEMBER 1988.

/DURING THE