XN000022-1994-05-04 — Page 34

19

WEDNESDAY, MAY 4, 1994

·

AVERAGE DAILY STOCK MARKET TURNOVER FIGURES

THE GOVERNMENT DID NOT CONSIDER IT APPROPRIATE OR PRACTICAL ΤΟ FOR REQUIRE THE SAME "AVERAGE DAILY STOCK MARKET TURNOVER" TO BE USED THE PURPOSE OF THE BUDGETS OF THE GOVERNMENT, THE SECURITIES AND FUTURES COMMISSION (SFC) AND THE STOCK EXCHANGE OF HONG KONG LIMITED (SEHK), THE SECRETARY FOR THE TREASURY, MR DONALD TSANG, LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

TOLD

IN PREPARING THE 1994/95 BUDGETS FOR THE SFC AND THE SEHK, AVERAGE DAILY TURNOVER ON THE STOCK MARKET WAS ASSUMED TO BR BILLION, MR TSANG SAID.

THE

THE

$4.5

FROM

THE

FOR THE PURPOSE OF ESTIMATING THE STAMP DUTY REVENUE STOCK TRANSACTIONS FOR THE GOVERNMENT'S 1994/95 BUDGET, ADMINISTRATION HAD ASSUMED AN AVERAGE DAILY VALUE OF STOCK TRANSACTIONS (INCLUDING TRANSFERS ON THE STOCK EXCHANGE AND PRIVATE TRANSFERS OF ABOUT $5 BILLION,

IN A WRITTEN REPLY TO A QUESTION BY THE HON ERIC LI, MR TSANG AT SAID THE DIFFERENT TURNOVER FIGURES REPRESENTED THE BEST JUDGEMENT THE TIME OF THOSE INVOLED IN THE PREPARATION OF THE RESPECTIVE BUDGETS IN THE LIGHT OF THE LATEST MARKET SITUATION.

"WE ARE NOT,

CONCERN THAT SO FAR, AWARE OF ANY PUBLIC DIFFENENT ESTIMATED TURNOVER FIGURES ARE A SOURCE OF CONFUSION," SAID.

THE FINANCIAL YEAR FOR THE SEHK STARTS FROM JULY 1 WHILE FOR THE GOVERNMENT AND SPC COMMENCES ON APRIL 1.

THE

HE

THAT

THE

MEANS DIFFERENCE IN TIMING IN PREPARING THE BUDGETS THE ESTIMATES ON MARKET TURNOVER MAY BE VASTLY DIFFERENT.

THAT

FIGURE

"IN ADDITION, IN FORECASTING THE AVERAGE DAILY TURNOVER FOR THE PURPOSE OF THE GOVERNMENT'S BUDGET THE ADMINSTRATION HAS INCLUDED IN IT THE VALUE OF PRIVATE TRANSFERS, MR TSANG.

**

ADDED HE

THAT THESE TURNOVER FIGURES WERE

MORE NO

THAN ESTIMATES BASED ON THE BEST ASSESSMENT AT THE TIME THEY WERE PRODUCED.

-

GOVT TO COMPILE ACCRUAL-BASED ACCOUNTS

THE

THE GOVERNMENT

SUPPLEMENTARY WILL COMPILE THE ACCRUAL-BASED ACCOUNTS ON A PILOT BASIS IN SELECTED DEPARTMENTS DURING 1994/95,

TOLD THE LEGISLATIVE SECRETARY FOR THE TREASURY, MR DONALD TSANG, COUNCIL TODAY (WEDNESDAY).

MR

IN A WRITTEN REPLY TO A QUESTION BY THE HON JIMMY MCGREGOR, TSANG SAID THE PUBLISHED ACCOUNTS OF THE GOVERNMENT WERE PREPARED ON A CASH BASIS.

/MR TSANG