XN000022-1991-01-23 — Page 2

WEDNESDAY, JANUARY 23, 1991

DISCLOSURE OF EXCHANGE FUND INFORMATION

CONSTANTLY UNDER REVIEW: FS

*

THE POSSIBILITY OF DISCLOSING FURTHER INFORMATION RELATING TO THE AFFAIRS OF THE EXCHANGE FUND IS KEPT CONSTANTLY UNDER REVIEW, THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

BUT GIVEN A DEGREE OF UNCERTAINTY IN THE FINANCIAL MARKETS, SIR PIERS SAID THE PUBLICATION OF ADDITIONAL FIGURES AT PRESENT MIGHT WELL NOT BE TO THE ADVANTAGE OF THE COMMUNITY.

IN REPLY TO THE QUESTION BY THE HON JAMES TIEN, SIR PIERS SAID A BALANCE HAD ΤΟ BE STRUCK BETWEEN THE GOVERNMENT'S FUNDAMENTAL DESIRE FOR GREATER TRANSPARENCY AND THE NEED TO ENSURE ITS ABILITY MAINTAIN EXCHANGE RATE STABILITY WAS NOT IMPAIRED IN ANY WAY.

"OUR FIRST PRIORITY MUST BE THE MAINTENANCE OF A STABLE KONG DOLLAR FOR THE BENEFIT OF THE PEOPLE OF HONG KONG, HE SAID.

**

ΤΟ

HONG

REDOMICILED COMPANIES REMAIN SUBSTANTIALLY THE SAME

*

REDOMICILING IS NOT NECESSARILY DAMAGING TO HONG REDOMICILED COMPANIES REMAIN SUBSTANTIALLY THE SAME BEFORE

AS THE RELOCATION, THE FINANCIAL SECRETARY, THE HON JACOBS, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

KONG SINCE

THEY WERE

SIR PIERS

"THEIR MANAGEMENT AND THE MAJORITY OF THEIR SHAREHOLDERS GENERALLY REMAIN IN HONG KONG.

PUBLIC

CONTRIBUTION UNCHANGED,

+

"THEIR HONG KONG ASSETS ARE UNAFFECTED BY THE MOVE, AND

TO AND INVOLVEMENT IN HONG KONG'S ECONOMY ARE SIR PIERS SAID.

THEIR BASICALLY

IN REPLY TO A QUESTION BY THE HON POON CHI-FAI, WHETHER THE EFFECT OF SUCH A MOVE WAS POSITIVE OR

SAID

SIR

LARGELY

NEGATIVE A MATTER OF PERCEPTION INVOLVING THE SUBJECTIVE JUDGEMENT THE VARIOUS PARTIES AFFECTED.

PIERS

WAS

OF

"IT MUST BE FOR THE MANAGEMENT AND SHAREHOLDERS OF ANY ΤΟ DECIDE WHETHER OR NOT THEY SHOULD RELOCATE THE COMPANY'S TO AN OVERSEAS JURISDICTION," THE FINANCIAL SECRETARY SAID.

COMPANY DOMICILE

SIR PIERS SAID REDOMICILED COMPANIES DID NOT ENJOY ANY SPECIFIC CONCESSIONS OR PRIVILEGES GRANTED EITHER BY THE HONG KONG LAW OR BY

THE GOVERNMENT.

"THE ONLY DIFFERENCE IS THAT, UPON REDOMICILING, BE SUBJECT TO HONG KONG DOMESTIC COMPANY LAW.

THEY CEASE TO

/"THERE ARE