XN000022-1994-01-12 — Page 36

15

WEDNESDAY, JANUARY 12, 1994

MEASURES TO DEAL WITH SHARES OVER-SUBSCRIPTION IMPACT

THE

TO

OF

HONG KONG ADMINISTRATION HAS ASKED THE STOCK EXCHANGE OF AND THE SECURITIES AND FUTURES COMMISSION TO EXAMINE POSSIBLE WAYS OVER-SUBSCRIPTION REDUCE THE IMPACT BROUGHT ABOUT BY THE MASSIVE NEW SHARE ISSUES.

(WEDNESDAY} IN

THIS WAS STATED BY THE ACTING SECRETARY FOR FINANCIAL SERVICES, MR TAM WING-PONG, IN THE LEGISLATIVE COUNCIL TODAY REPLY TO A QUESTION BY THE HON ROGER LUK KOON-HOO.

ON

MARKET CLOSED FOR

DECEMBER 7 LAST YEAR THE TIGHTNESS OF THE INTERBANK CAUSED BY A MAJOR INITIAL PUBLIC OFFERING WHICH WAS SUBSCRIPTION ON THAT DAY.

WAS

APPLICATION MONIES

MR TAM SAID RECYCLING OF THE $100 BILLION DID NOT GO WELL AND CAUSED A RISE IN THE OVERNIGHT HONG KONG INTERBANK OFFER RATE.

LIQUIDITY AUTHORITY.

IN THE END, SUBSTANTIAL FUNDS HAD TO BE CHANNELLED THROUGH

HONG OPERATED BY THE ADJUSTMENT FACILITY

KONG

THE MONETARY

MR TAM SAID THE STOCK EXCHANGE OF HONG KONG HAD IN THE PAST FEW AT ENABLING MONTHS IMPLEMENTED A NUMBER OF MEASURES AIMED PRIMARILY INVESTORS TO MORE ACCURATELY ASSESS THE PRICING OF AND DEMAND FOR ISSUE AT THE INITIAL PUBLIC OFFERING STAGE.

CHANGES

REQUIRING

THE

AN

ISSUER

TO

RULE IN ADDITION, LISTING REJECT ANY APPLICATION FOR MORE THAN 100 PER CENT OF THE SECURITIES ON OFFER AND TO REJECT MULTIPLE APPLICATIONS ARE UNDER CONSIDERATION IMPLEMENTATION VERY SOON.

FOR

ARE

"THE STOCK EXCHANGE AND THE SECURITIES AND FUTURES CONTINUING TO EXAMINE WAYS OF IMPROVING THE

COMMISSION EFFICIENCY OF THE

INITIAL PUBLIC OFFERING PROCESS.

"IN

ΤΟ

THE

THE MEANTIME,

WILL MONETARY AUTHORITY

MONEY MARKET AND TAKE CONTINUE

THE OPERATION OF THE MONITOR APPROPRIATE ACTION WHENEVER NECESSARY," MR TAM SAID.

HONG KONG

THE HONG KONG MONETARY AUTHORITY HAS WRITTEN TO THE HONG

SEVERAL MEASURES ASSOCIATION OF BANKS LAST DECEMBER TO SUGGEST IMPROVE THE EFFICIENCY OF THE RECYCLING PROCESS.

0

-

REVIEW OF LDC'S ROLE LARGELY COMPLETED

KONG

ΤΟ

ENVIRONMENT

THE REVIEW OF THE LAND DEVELOPMENT CORPORATION'S THE URBAN RENEWAL PROCESS HAS BEEN LARGELY COMPLETED,

AND LANDS, FOR PLANNING,

MR TONY

(LDC) ROLE THE SECRETARY BASON,

IN

TOLD THE

LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

KUN-SUN,

IN

AND

IN A WRITTEN REPLY TO A QUESTION BY THE HON JAMES TO MR EASON SAID THE CONCLUSIONS OF THE REVIEW WERE BEING RE-EXAMINED

OF URBAN RENEWAL REVIEW OVERALL CONTEXT OF A WIDER THE REDEVELOPMENT ISSUES CONNECTED WITH IMPLEMENTATION OF THE METROPLAN.

/MR EASON