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HK's way of handling business attracts international fund managers

Hong Kong's simple way of handling business will continue to attract international fund managers to base their regional operations here, the Financial Secretary, Sir Hamish 'Macleod, said today (Thursday).

Speaking at the Sunday Money Fund Manager of the Year Awards Ceremony, Sir Hamish said the new measures on cash rebates announced by the Securities and Futures Commission (SFC) which would take effect on July 1 this year, would help increase the transparency of the market.

SFC's decision was to prohibit retention of cash rebates received by fund managers from stockbrokers in respect of mutual fund accounts and to tighten up regulation on soft dollar practices.

said.

"This is a development that will benefit both investors and the industry," he

Sir Hamish noted that Hong Kong was the regional centre of portfolio management activity.

"Broadly speaking, I believe we have achieved a reasonable balance, in the sense that there is adequate regulation to ensure sound business standards and confidence in the institutional framework."

"But we have avoided over-regulation," he said.

Sir Hamish said he was glad to see that there was continued growth in the fund management industry. The number of unit trusts and mutual funds had increased to 978 at the end of 1994 from 895 a year earlier.

"This is due mainly to the continued efforts of fund managers to develop new products to meet the requirements of the investing public," he said.

End/Thursday, February 23, 1995