XN000022-1992-08-19 — Page 2

WEDNESDAY, AUGUST 19, 1992

MARKET REGULATORY SYSTEM PROTECTS INVESTORS

HONG KONG HAS A SYSTEM OF REGULATION OF FINANCIAL MARKETS WHICH GIVES INVESTORS CONFIDENCE THAT THEIR MONEY IS PROPERLY LOOKED AFTER, THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN, SAID TODAY (WEDNESDAY).

**I HAVE BEEN VERY PLEASED TODAY TO SEE SO MANY OF THOSE WHO EFFECTIVELY MONITOR AND REGULATE THE MARKETS WHICH UNDERPIN OUR FINANCIAL SUCCESS.

"AND I AM SURE MYSELF THAT THEIR WORK AND THE CONTINUING VITALITY OF THE HONG KONG ECONOMY WILL ENSURE THAT WE BECOME EVEN MORE IMPORTANT AS ONE OF THE WORLD'S FINANCIAL CENTRES, HE SAID, ROUNDING UP A DAY'S VISIT TO FINANCIAL INSTITUTIONS,

HE SAID THERE WERE A NUMBER OF REASONS BEHIND HONG KONG'S FINANCIAL SUCCESS: "FIRST OF ALL, BECAUSE WE ARE A FREE ENTERPRISE ECONOMY. SECONDLY, BECAUSE WE HAVE A LOW AND STABLE TAX REGIME. THIRDLY. BECAUSE WE HAVE NO SYSTEM OF EXCHANGE CONTROLS. AND FOURTHLY, BECAUSE WE HAVE THE CERTAINTY OF THE RULE OF LAW.

EARLIER THIS MORNING, THE ACTING FINANCIAL SECRETARY, MR DAVID NENDICK, BRIEFED MR PATTEN AT GOVERNMENT HOUSE ON THE FUNCTIONS AND OPERATIONS OF VARIOUS FINANCIAL INSTITUTIONS.

THE

ACCOMPANIED BY MR NENDICK, HE CALLED ON THE OFFICE OF EXCHANGE FUND (OEF). THE ACTING SECRETARY FOR MONETARY AFFAIRS, MR. JOSEPH YAM, EXPLAINED TO HIM HOW THE EXCHANGE FUND WAS MANAGED.

HE TOURED THE DEALING ROOM AND THE CENTRAL MONEY MARKETS TO HAVE A BETTER UNDERSTANDING OF THE WORK OF OEF.

UNIT

COMMISSION

MR PATTEN WENT ON TO THE SECURITIES AND FUTURES (SFC) AT EXCHANGE SQUARE. HE WAS BRIEFED BY ITS CHAIRMAN, MR ROBERT NOTTLE, ON HOW THE COMMISSION REGULATED THE STOCK MARKET. HE ALSO MET EXECUTIVE AND NON-EXECUTIVE DIRECTORS OF THE COMMISSION.

HE THEN PROCEEDED TO THE STOCK EXCHANGE OF HONG KONG (SEHK) ΤΟ LEARN ABOUT THE WORKINGS OF THE INSTITUTION. HE SAW HOW DEALINGS WERE C'ARRIED OUT IN THE TRADING HALL. JUST BEFORE THE CLOSE OF THE MORNING SESSION. AFTERWARDS HE MET MEMBERS OF THE EXECUTIVE COMMITTEE OF SEHK COUNCIL.

IN THE AFTERNOON, THE GOVERNOR PAID A VISIT TO HONG KONG FUTURES EXCHANGE. HE SAW ACTIVITIES IN THE TRADING HALL.

AFTERWARDS, HE WENT ON TO THE REGISTRAR GENFRAL'S DEPARTMENT. RECEIVED BY THE REGISTRAR GENERAL, MR NOEL GLEESON, HE WAS BRIEFED ON VARIOUS SERVICES PROVIDED BY THE DEPARTMENT. HE SAW THE BUSY

ACTIVITIES AT THE PUBLIC SEARCH SECTION OF THE COMPANIES REGISTRY.

BEFORE WINDING UP THE VISIT, NR PATTEN CALLED ON THE OFFICES OF THE COMMISSIONER OF INSURANCE AND THE COMMISSIONER OF BANKING TO LEARN ABOUT WORKINGS OF THE TWO OFFICES.

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