XN000022-1994-11-25 — Page 14

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FRIDAY, NOVEMBER 25, 1994

FS: ACTUALLY, HARDLY ANYONE HAS ANY CONCERN ABOUT LINKED EXCHANGE RATE. I DON'T KNOW WHY IT KEEPS COMING OUT. THE HONG KONG GOVERNMENT AND SPOKESMAN FOR CHINA HAVE ALL MADE IT CLEAR INDEED VERY RECENTLY AT THE PWC SEMINAR THAT THERE IS NO DIFFERENCE OF VIEWS WHATSOEVER BETWEEN US ON THAT ISSUE. THE LINKED EXCHANGE RATE WILL GO BEYOND 97. THE BUSINESS COMMUNITY HERE SUPPORT IT, THE OVERWHELMING MAJORITY SUPPORT IT ABSOLUTELY. IT'S BROUGHT PREDICTABILITY AND IT'S BROUGHT STABILITY. SO THAT IS NOT AN ISSUE NOR THERE IS ANY SIGNS OF SPECULATION ON THE HONG KONG DOLLAR. IT IS ALSO I MUST SAY FORTUNATE RATHER THAN CLEVER OF ME, BUT IT IS FORTUNATE THAT INTEREST RATES IN THE U.S. ARE GOING UP HENCE IN HONG KONG THEY'RE GOING UP, SO THAT THE ONE DRAWBACK OF THE LINKED RATE WHICH WE'VE ADMITTED FROM THE BEGINNING THAT WE DON'T HAVE ENTIRE CONTROL OVER INTEREST RATES. CURRENTLY NOT A SERIOUS DRAWBACK, THE INTEREST RATES ARE GOING AND THAT WILL HELP, NOT DRAMATICALLY, BUT IT WILL HELP COMBAT INFLATION. SO THAT'S A RATHER WELCOME.

IT'S

UP,

WHAT'RE YOUR COMMENTS ON THE MODERATE INCREASE IN THE MORTGAGE

Q: LOANS?

FS: WELL, AS WITH ALL STATISTICS, ITS DEPEND ON WHICH FIGURES YOU LOOK

ᎪᎢ .

THE FIGURE THAT I THOUGHT WAS INTERESTING IS PROPERLY A FAIR REFLECTION OF WHAT'S GOING ON IS THAT THE AMOUNT OF MORTGAGE LOANS VVIDIANDING TO MURË UR LESS STABLE. IT'S GONE UP 0.025, WELL SOME INSIGNIFICANT PERCENTAGE, SO THE AMOUNT OF MORTGAGE LENDING IS MORE OR LESS STABLE. I THINK THAT'S QUITE A GOOD SIGN. AT THE MOMENT I THINK BOTH ON THE DOMESTIC SIDE AND THE OFFICE SIDE, THINGS ARE GOING ON QUITE WELL, FROM MY PERSPECTIVE. THE RECENT REPORT WHICH WE ISSUED ON OFFICE ACCOMMODATION, I THINK SET OUT FAIRLY CONVINCINGLY THAT THE SUPPLY SITUATION WILL BE INCREASING QUITE NICELY IN THE NEXT YEAR OR TWO. SO I DON'T SEE ANY NEED AT THE MOMENT FOR ANY NEW INITIATIVES PROPERTY,

ON

Q: SIR HAMISH THE GRADUAL INCREASE IN INTEREST RATES HAVE LED STOCK MARKET FALL, WILL THIS CHANGES THE ECONOMIC OUTLOOK OF KONG AND WILL THE GOVERNMENT ADJUST ITS PROJECTION ON INFLATION AND GDP GROWTH?

THE

HONG

RATE

AND

FS: NO. IT'S A SHORT ANSWER. STOCK MARKETS ARE THEIR NATURE GO UP DOWN. IT DOESN'T GREATLY AFFECT OR HARDLY AFFECT AT ALL ECONOMIC GROWTH UNLESS IT'S A DRAMATIC CHANGE. IT DOES AFFECT OF COURSE A BIT THE QUEUE OF COMPANIES WHICH WISH TO RAISE MORE MONEY ON THE STOCK MARKET USUALLY THAT SLOW DOWN A BIT. BUT IN ESSENCE THE ECONOMY GOES ON,

AND YOU'LL BE AWARE THAT WE ARE STILL FORECASTING GOOD GROWTH RATES FOR THIS YEAR AND BEYOND.

MOST THIS

Q: THE LATEST FIGURES SHOWS RETAIL SERVICE HAD BEEN CONTINUING SLUGGISH AND ACCORDING TO MORGAN

NOW HONG KONG IS NOW THE EXPENSIVE RETAIL LOCATION IN THE WORLD. ARE YOU CONCERNED ABOUT AND CAN YOU DO SOMETHING ABOUT IT?

·

FS: I THINK WE ARE QUITE EXPENSIVE AND I DON'T THINK IF I CAN ARGUE WITH THAT. AND OF COURSE ITS RELATED TO RENTS. VERY LARGELY RELATED TO RENTS. AND I HOPE AS THE SUPPLY OF NON-RESIDENTIAL PROPERTY INCREASES WE WILL SEE SOME ADJUSTMENT THERE. BUT IT IS A CONCERN, WE ARE CERTAINLY NOT AS CHEAP AS A SHOPPERS' PARADISE AS WE USED TO BE. LAST QUESTION.

/Q:

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