XN000022-1997-02-19 — Page 50

-

32

Stock market dealings

Following is a question by the Hon Chim Pui-chung, and a written reply by the Secretary for Financial Services, Mr Rafael Hui, in the Legislative Council today (Wednesday):

Question:

Does the Government know:

(a)

(b)

(c)

whether all dealings in the stock market transacted with "legal tender in cash" would not be considered by the Securities and Futures Commission as manipulating the market;

of the currencies regarded as "legal tender in cash"; and

whether there are legislation or regulations which allow dealings in stock and shares not being transacted with "legal tender in cash"?

Answer:

(a)&(c)

(b)

The Securities and Futures Commission (SFC) has advised that the term "legal tender in cash" is a colloquial term and has no legal definition. It is normally used in general discussion to express the view that transactions should be honest and not fraudulent. Sections 135 and 136 of the Securities Ordinance, Cap. 333, prohibit the intentional creation of false and misleading appearances of active trading in the Stock Exchange and the use of fraudulent devices in the purchase and sale of securities. The SFC has further advised that all dealings in the stock market which fully comply with the Rules of the Stock Exchange of Hong Kong and all relevant laws are recognised by the SFC as lawful transactions.

The SFC considers acceptable any currency which may be legally used in Hong Kong for the purpose of payment.

End

Page 50Page 51