XN000022-1993-07-03 — Page 3

SATURDAY, JULY 3, 1993

2

IMPORTANCE OF FINANCIAL SECTOR TO GROW

OF THE OF THE

THE RELATIVE IMPORTANCE OF THE FINANCIAL SECTOR OF CONTINUE ΤΟ WILL

CHANGE GROW AS THE STRUCTURAL CONTINUES IN

NEXT THE

DECADE, CHIEF EXECUTIVE MONETARY AUTHORITY, MR JOSEPH YAM, SAID TODAY (SATURDAY).

HONG KONG TERRITORY HONG KONG

ECONOMIC SERVICING SERVICING

SPEAKING AT

KONG A SYMPOSIUM ORGANISED BY THE HONG JOURNAL, MR YAM NOTED THAT THE LOCAL FINANCIAL SECTOR, FROM INCREASINGLY PRINCIPALLY HONG KONG 10 YEARS AGO, WAS NOW CHINA, AND THE COUNTER PARTIES WITH WHICH CHINA TRADED.

BECOME TRULY INTERNATIONAL ROLE AS AN INTERNATIONAL

"HONG KONG'S FINANCIAL SECTOR HAS

IS PLAYING AN

IMPORTANT

"

AND HONG KONG FINANCIAL CENTRE, HE SAID.

PROVIDE, THE IN

HONG KONG PROVIDES, AND PROMISES TO CONTINUE TO BEST AND MOST CONVENIENT LOCATION FOR INVESTORS EFFECTIVELY TO BE CHINA WHILE NOT DIRECTLY EXPOSED TO THE RISKS, HE SAID.

OUR MARKETS ARE "OUR RULES OF THE GAME IN HONG KONG ARE CLEAR.

AND THERE ARE LIQUID. OUR LEGAL SYSTEM IS FAMILIAR TO INVESTORS.

INTO WRITTEN

THE MANY

CLEARLY

JOINT PROVISIONS MORE COMFORTING DECLARATION AND THE BASIC LAW," MR YAM SAID.

DECADE HE SAID THE OVERALL CHALLENGE FOR HONG KONG IN THE NEXT

ANY FAILURE TO AND BEYOND WAS FOR ALL CONCERNED TO UPHOLD ALL THIS.

COMPARATIVE DO SO COULD LEAD TO AN IRREPARABLE EROSION OF HONG KONG'S ADVANTAGE.

WHILE

MR

CONCEDING THAT HONG KONG WOULD FACE INCREASING COMPETITION FROM OTHER CENTRES, PARTICULARLY THOSE INSIDE CHINA. YAM WAS OPTIMISTIC THAT THE TERRITORY WOULD MAINTAIN ITS STATUS.

AND TRADING MAJORITY OF THE SUPPORTED BY A

THE CRITICAL MASS OF AN INTERNATIONAL FINANCIAL NETWORK IS ALREADY HERE, WITH THE PRESENCE OF THE

THE WORLD, FINANCIAL INSTITUTIONS LARGEST SOPHISTICATED BUSINESS AND PHYSICAL INFRASTRUCTURE.

IN

THE

"I

THINK FOR SOME TIME AFTER 1997 HONG KONG WILL STILL BE ONLY TRULY INTERNATIONAL FINANCIAL CENTRE LOCATED IN CHINA," HE SAID.

PLAYING THE NOTING THAT THE HONG KONG DOLLAR IS INCREASINGLY

MR YAM ROLES OF MONEY AND BEING USED AS A STORE OF VALUE IN CHINA, SAID CLOSE CONTACTS WERE MAINTAINED WITH THE PEOPLE'S BANK OF CHINA.

THIS IS WITH A VIEW TO APPRECIATING THE BACKGROUND OF SUCH DEVELOPMENTS AND ENABLING THE AUTHORITY, WHEN NECESSARY, TO COME UP WITH THE APPROPRIATE MONETARY POLICY RESPONSE IN THE BEST İNTEREST OF HONG KONG,

HE SAID THE INTENTION OF IMPLEMENTING A PROGRAMME of REFORM AND LIBERALISATION IN CHINA WAS ADMIRABLE.

ECONOMIC

/BUT HE