XN000022-1993-10-18 — Page 2

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MONDAY, OCTOBER 18, 1993

HK RANKS 7TH IN WORLD STOCK MARKETS

HONG KONG IS NOW THE SEVENTH LARGEST STOCK MARKET IN THE WORLD IN TERMS OF MARKET CAPITALISATION, RISING FROM THE 10TH PLACE IT OCCUPIED A FEW YEARS AGO, THE FINANCIAL SECRETARY, MR HAMISH MACLEOD SAID THIS (MONDAY) EVENING.

THIS TREND RECEPTION TO MARK EXCHANGE.

OUTLINING

WOULD NO DOUBT CONTINUE, HE SAID AT THE COCKTAIL THE SEVENTH ANNIVERSARY OF THE HONG KONG STOCK

THE ACHIEVEMENTS OF THE STOCK EXCHANGE, MR MACLEOD NOTED THAT THE NUMBER OF LISTED COMPANIES WAS 455 AT THE END OF LAST MONTH AND THE DAILY TURNOVER AVERAGED NEARLY $4 BILLION FOR THE FIRST NINE MONTHS OF THIS YEAR.

HANG SENG INDEX ALSO SET REPEATED RECORDS RECENTLY, HE ADDED.

HE RECALLED THAT IN 1987, THE EXCHANGE HAD ONLY 266 LISTED COMPANIES AND RAISED ABOUT $24 BILLION IN CAPITAL. TRADING AT THE TIME AVERAGED $1.5 BILLION A DAY.

BY THE END OF LAST YEAR, THE NUMBER OF LISTED COMPANIES ROSE TO 374 AND THE CAPITAL RAISED JUMPED SIGNIFICANTLY TO OVER $100 BILLION. MARKET TURNOVER ALSO SAW A MARKED INCREASE TO $2.8 BILLION A DAY.

ENTHUSIASM

HE HOPES THAT THE EXCHANGE WOULD CONTINUE WITH ITS IN "FURTHER DEVELOPING OUR MARKET TO MAINTAIN OUR COMPETITIVENESS”.

HE UNDERSTANDS THAT THE EXCHANGE WOULD BEGIN OPERATION OF THE AUTO-MATCHING SYSTEM AND INTRODUCE REGULATED SHORT-SELLING IN THE NEAR

FUTURE.

THE EXCHANGE ALSO PLANS TO INTRODUCE STOCK OPTIONS WHICH WOULD PUT US ON PAR WITH OTHER LEADING FINANCIAL CENTRES, HE SAID.

"THIS WILL ATTRACT FURTHER INVESTORS' INTERESTS AND OFFER NEW OPPORTUNITIES TO THE BROKERAGE COMMUNITY," HE ADDED.

ON DEALING COSTS, HE SAID THE GOVERNMENT HAD DONE ITS PART THROUGH SUCCESSIVE REDUCTIONS IN STAMP DUTY то SUPPORT MARKET

DEVELOPMENTS.

THE REDUCTION OF TRANSACTION LEVY AND THE RECENT SUSPENSION OF THE SPECIAL LEVY HAD HELPED THE PROCESS, HE ADDED.

"OVER TIME, THE CENTRAL CLEARING AND SETTLEMENT SYSTEM WILL CONTINUE TO REDUCE DEALING COSTS."

MR MACLEOD POINTED OUT THAT ANOTHER IMPORTANT DEVELOPMENT WAS THE LISTING OF CHINESE STATE ENTERPRISES.

SINCE JULY THIS YEAR, THERE HAD BEEN FOUR SUCCESSFUL LISTING AND MORE WERE IN THE PIPELINE, HE SAID.

"AGAIN, THIS IS THE RESULT OF THE EFFORTS OF AND CO-OPERATION OF THE EXCHANGE AND THE SECURITIES AND FUTURES COMMISSION,

+ HE SAID.

/THE FINANCIAL