XN000022-1994-01-27 — Page 4

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THURSDAY, JANUARY 27, 1994

HK BENEFITS FROM CHINESE MONETARY REFORMS

* *

CHINA WILL

THE MONETARY REFORM MEASURES BEING IMPLEMENTED BY OVERALL BENEFIT HONG KONG IN THE LONG RUN, THE CHIEF EXECUTIVE OF

KONG MONETARY AUTHORITY HONG

(HKMA), MR JOSEPH YAM, SAID (THURSDAY).

SPEAKING

THE TODAY

AND

IMPLICATIONS

ASSOCIATION,

INCREASINGLY

BEING

ON "MONETARY DEVELOPMENTS IN CHINA FOR HONG KONG" AT A LUNCH MEETING OF THE FRENCH BUSINESS MR

THAT WITH THE HONG KONG ECONOMY YAM NOTED INTEGRATED WITH THAT OF CHINA, ITS STABILITY AND PROSPERITY TO A LARGE EXTENT WERE INFLUENCED BY DEVELOPMENTS IN CHINA.

REFORM MEASURES WILL CONSIDERABLY STRENGTHEN BE BROUGHT SYSTEM AND IN TIME ENABLE INFLATION TO

MONETARY "THE

CHINA'

A'S MONETARY

UNDER CONTROL.

"THIS IS A NECESSARY CONDITION FOR THE RAPID ECONOMIC DEVELOPMENT IN CHINA TO BE SUSTAINED IN THE LONGER TERM.

"THE PATH WILL I THINK BECOME LESS BUMPY. WITH LESS VOLATILITY AND DISRUPTIVE IN THE

SHOCKS OF CHINA THERE WILL BE LESS ECONOMY CRISES FOR HONG KONG," HE SAID.

A STABLE

FOR HONG

MR YAM ADDED THAT WITH THE ROLE NOW HONG KONG WAS PLAYING AS AN INTERNATIONAL FINANCIAL CENTRE AT THE DOOR STEPS OF CHINA, AND PROSPEROUS CHINA WOULD UNDOUBTEDLY MEAN MORE BUSINESS KONG.

H

WILL ALSO

AS THE BANKS IN CHINA BECOME COMMERCIALISED, THEY START TO LOOK TO THE INTERNATIONAL MARKET. NATURALLY THEY WOULD WANT A INTERNATIONALISED PRESENCE IN HONG KONG AND MAKE USE OF THE VERY MUCH FINANCIAL MARKETS OF HONG KONG. SO WOULD BANKS FROM OTHER PARTS OF THE WORLD WANTING TO DO BUSINESS WITH CHINA.

"AND AS THE BANKING SYSTEM IN CHINA OPENS UP, KONG

WILL

OPPORTUNITIES HAVE ATTRACTIVE TOO ACTIVITIES INTO CHINA," HE SAID.

BANKS IN HONG FOR EXPANDING THEIR

MR YAM ADDED THAT HONG KONG CLEARLY HAD A USEFUL ROLE TO TRANSFERRING THE SKILLS AND TECHNOLOGY NECESSARY TO ASSIST AND UP THE REFORM PROCESS.

PLAY, SPEED

THE CLOSE "THERE IS THEREFORE A NEED FOR THE CONTINUATION OF CO-OPERATION BETWEEN THE FINANCIAL COMMUNITIES OF HONG KONG AND CHINA, AND THE AUTHORITY AND

BETWEEN THE HONG KONG MONETARY PARTICULARLY

APPRECIATION PEOPLE'S BANK OF CHINA, SO THAT BOTH COULD GAIN A BETTER

BETWEEN THE TWO MONETARY INTRICACIES OF THE RELATIONSHIP THE SYSTEMS.

OF

IMPACT DEVELOPMENT.

ON, AND

"IT IS IMPORTANT THAT CHINA TAKES FULL ACCOUNT OF THE

OF, THE POTENTIAL

HONG

ITS KONG IN

POSSIBLE MONETARY

"IT IS EQUALLY IMPORTANT THAT WE UNDERSTAND THIS SO THAT WE KNOW HOW TO COPE AND CONTRIBUTE OUR TECHNICAL EXPERTISE THE BEST INTEREST OF HONG KONG, HE SAID.

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DEVELOPMENT,

IN

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