XN000022-1994-12-14 — Page 41

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That said, we agree fully with the suggestion of some honourable members that the 1987 rescue package should not be used as a precedent for imposing similar levy on investors in the stock market in future. Indeed, each case has to be assessed on its own merits in the interests of the public and in accordance with the circumstances prevailing at the time.

Some honourable members have also requested that a review on the impact of stock futures on the cash market should be undertaken after the new product has been launched for some time. The Securities and Futures Commission has agreed to conduct such a review six to nine months after the commencement of the trading of the product. I should nevertheless reiterate that the Futures Exchange and the regulator will keep a close watch of the situation. Should any problem be detected at any point in time, it is their duty to take prompt action to address the situation rather than to wait for the review.

As honourable members who have spoken indicated that the Order is made for a genuine and simple purpose of better protecting our investors. It represents the regulator's view on the desirable level of regulation attached to the trading of stock futures. I cannot see any grounds for Members to reject this objective.

Mr President, against this background I urge honourable members not to repeal the Order and to join the official members to vote against the motion.

End/Wednesday, December 14, 1994

Amendments to schedule of Carriage of Goods by Sea Bill

Following is the speech by the Secretary for Economic Services, Mr Gordon Siu, in moving the committee stage amendment to a schedule of the Carriage of Goods by Sea Bill in the Legislative Council today (Wednesday):

Mr Chairman,

I move that the Schedule be amended as set out in the paper circulated to Members.