XN000022-1995-05-01 — Page 8

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Sound regulatory environment in HK: FS

Hong Kong has established a sound regulatory environment which is beneficial to its continued development as an international financial centre, the Financial Secretary, Sir Hamish Macleod, said this (Monday) evening.

Speaking at a reception to mark the sixth anniversary of the Securities and Futures Commission (SFC), Sir Hamish said Hong Kong's regulatory system was inevitably tested from time to time, most recently in the Barings incident.

"The efficient and effective handling of that problem speaks eloquently for the system of regulation in place, and the store of experience and expertise that has been built up at the SFS, the Exchanges and the clearing houses.

"They have handled the situation speedily and professionally," he said.

Sir Hamish said Hong Kong would face challenges ahead, not the least of which was to keep Hong Kong competitive with other markets.

"Meeting this challenge will require an ability to adapt quickly to new market realities and continued vigilance to maintain and enhance the integrity of our market.

"I'm confident that you are all up to that task," he said.

End/Monday, May 1, 1995

Feature on revision of the Effective Exchange Rate Indices

A feature article entitled "Revision of the Effective Exchange Rate Indices for the Hong Kong Dollar" is published in the April 1995 issue of the Hong Kong Monthly Digest of Statistics (HKMDS).

The Effective Exchange Rate Indices (EERI) for the Hong Kong dollar (HKD) compiled by the Census and Statistics Department are indices which indicate the HKD's overall external value against a basket of selected currencies.