XN000022-1991-10-07 — Page 2

MONDAY, OCTOBER 7, 1991

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IMMENSE OPPORTUNITIES FOR HK CAPITAL MARKETS: GOVERNOR

WITH THE OPENING UP OF CHINA AND THE INCREASING PROSPERITY OF ITS SOUTHERN PROVINCES, THE OPPORTUNITIES FOR HONG KONG'S CAPITAL MARKETS ARE TRULY IMMENSE, THE GOVERNOR, SIR DAVID WILSON, SAID THIS

(MONDAY) EVENING.

ADDRESSING THE FEDERATION INTERNATIONALE DES VALEURS GENERAL ASSEMBLY DINNER, SIR DAVID SALD AS THE CHINESE ECONOMY CONTINUED ΤΟ GROW, MAINLAND INDUSTRIES WOULD HAVE AN INCREASING APPETITE FOR DEVELOPMENT CAPITAL.

"INFRASTRUCTURE

PROJECTS IN CHINA WILL ALSO NEED FINANCING. HONG KONG, WITH ITS LIQUID CAPITAL MARKET, [TS CONTACTS AND SOPHISTICATED KNOWLEDGE OF THE MAINLAND, IS THE NATURAL CENTRE FOR ORGANISING THE NECESSARY FUNDING, HE SAID.

**

AN

SIR DAVID POINTED OUT THAT HONG KONG'S STOCK MARKET WAS NOW IMPORTANT SOURCE OF CAPITAL FOR LOCAL AND REGIONAL COMPANIES AND IT WAS ATTRACTING GROWING INTERNATIONAL INVESTOR INTEREST.

"MOST MAJOR INTERNATIONAL SECURITIES HOUSES NOW HAVE A PRESENCE HERE. HONG KONG IS ALSO THE REGIONAL CENTRE FOR INVESTMENT MANAGEMENT BUSINESS.

"THE FACT THAT THE MAJORITY OF THE LEADING INTERNATIONAL FUND MANAGERS HAVE THEIR PRINCIPAL BASE FOR ASIA IN HONG KONG SPEAKS FOR ITSELF, THE GOVERNOR SAID.

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THE NUMBER OF COMPANIES LISTED ON THE LOCAL EXCHANGE HAD JUMPED FROM 250 TO WELL OVER 300 AND THE TOTAL TURNOVER LAST YEAR WAS MORE THAN DOUBLE THE FIGURE IN 1986, SJR DAVID NOTED.

THE GOVERNOR SAID HONG KONG COULD NOT AFFORD TO REST ON ITS LAURELS AS SECURITIES MARKETS WERE HIGHLY COMPETITIVE.

"AND AS INSTITUTIONAL INVESTORS IN NORTH AMERICA, EUROPE AND JAPAN SEEK TO DIVERSIFY, HONG KONG MUST OFFER ATTRACTIVE SERVICES.

'WE MUST ENSURE THAT OUR PRUDENTIAL FRAMEWORK COMPATIBLE WITH THAT OF MAJOR FINANCIAL CENTRES ELSEWHERE, SYSTEMS AT LEAST AS GOOD IF NOT BETTER," HE SAID.

IS BROADLY AND OUR

HE POINTED OUT THAT MANY IMPORTANT CHANGES HAD BEEN TO KEEP HONG KONG'S COMPETITIVE EDGE.

INTRODUCED

UNIFICATION OF THE STOCK EXCHANGE IN 1986 BROUGHT WITH IT UNIFORM LISTING AND TRADING REQUIREMENTS AND THIS HELPED THE GROWTH OF THE MARKET.

SIR DAVID SAID THE GOVERNMENT ALSO CAPITALISED ON THE TRAUMATIC

OF 1987 INTERNATIONAL PROBLEMS

BY HASTENING OTHER REFORMS WHICH

INCLUDED:

+

THE ESTABLISHMENT OF THE SECURITIES AND FUTURES COMMISSION AS AN AUTONOMOUS STATUTORY BODY;

/- LEGISLATION, SOME