XN000022-1990-07-25 — Page 63

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WEDNESDAY, JULY 26, 1990

SFC UNDERTAKING ESSENTIAL TASKS

FUTURES

COMMISSION

(SFC)

13

WELFARE OF HONG KONG'S DESERVES FULL HON DAVID

SUPPORT,

THE

SAID NENDICK,

IN THE

AND THE SECURITIES THE TASKS UNDERTAKING ARE ESSENTIAL FOR THE LONG-TERM FINANCIAL MARKETS AND THAT IT THEREFORE

THE SECRETARY, ACTING FINANCIAL

LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

ANNUAL REPORT

1989, SFC TABLING THE COMMISSION HAD HAD A FAIRLY ROUGH RIDE IN ITS OPERATION.

MR

SAID NENDICK

THE FIRST YEAR OR 80 OF

WHICH LED TO THE SAID MUCH

CIRCUMSTANCES NOTING THE HOWEVER, AFTER ESTABLISHMENT OF THE COMMISSION ON MAY 1, 1989, MR NENDICK HAD BEEN ACHIEVED IN A RELATIVELY SHORT PERIOD OF TIME.

"THE

REFORMS WE

AMPLY WAS INTRODUCED

THE SHOCK OF THE

VALUE OF THE

HAVE DEMONSTRATED LAST YEAR WHEN OUR MARKETS WITHSTOOD EVENTS IN PEKING WELL.

"THIS WAS IN MARKED CONSTRAST TO WHAT HAD HAPPENED 1987, HE SAID.

H

MIGHT THERE MR NENDICK RECOGNISED THAT FEARED THAT HONG KONG WAS MOVING IN THE DIRECTION BUT HE REITERATED THAT THAT WAS NOT THE CASE.

IN OCTOBER

STILL BE THOSE WHO OF OVER-REGULATION

TO CONTINUB

BE

THAT WE ONLY NECESSARY WHOLE OR

"OUR PHILOSOPHY IS, AND WILL INTERVENE IN THE WORKINGS OF THE MARKET PLACE WHERE THIS IS EITHER IN THE INTERESTS OF THE INTEGRITY OF THE SYSTEM AS A OF IMPORTANT PARTS OF IT OR TO PROTECT NON-PROFESSIONAL PARTICIPANTS.

ARE NOT STIFIED WE MUST EQUALLY ENSURE

RECEIVE INTERNATIONAL,

"WE ARE AS CONCERNED AS ANY THAT OUR MARKETS BY A PLETHORA OF RULES AND REGULATIONS, BUT

AND LOCAL THAT ORDINARY INVESTORS, BOTH ADEQUATE DEGREE OF PROTECTION FROM EXPLOITATION,

"I BELIEVE THAT WE HAVE CURRENTLY GOT THE BALANCE ABOUT RIGHT HE SAID.

AN

*

THAT

THE

KONG UNLESS

TO BE FAILED

RECOGNISED MR NENDICK SAID IT OFTEN VOICE OF THE ORDINARY INVESTOR WAS SELDOM HEARD IN HONG THINGS WENT SERIOUSLY WRONG.

HERE AS INSURANCE

THIS WAS MAINLY BECAUSE ONLY A SMALL PROPORTION OF SHARES WERE HELD BY LOCALLY BASED INSTITUTIONAL INVESTORS SUCH COMPANIES AND PENSION FUNDS.

SUCH ELSEWHERE,

INSTITUTIONS

OFTEN

HAD

SUBSTANTIAL

VOTING

THEY COULD IN EFFECT

POWER AND, IN PROTECTING THEIR OWN INTERESTS, ACT AS WATCHDOGS FOR THE WHOLE COMMUNITY.

/"AS THIS