TNAG-1483-FCO40-2037-Economic-situation-in-Hong-Kong-1986 — Page 54

3.20

market

The total volume of funds raised through the stock in the third quarter of amounted to $1,947 million

shares offered to the private placement by

1986. Of this total, $70 million was raised by new issues of public by one company, $485 million by six companies, and $1,392 million by

rights issues by three companies.

3.21

The futures market for the Hang Seng Index has also developed rapidly. Since the opening of the market on 6 May

1986, total turnover

(15)

growth

has

recorded very

substantial

It is now the most active stock index futures

States. It provides a means

market outside the United

individuals

or

institutions

who have direct or

for

indirect

concerns with the local stock market to hedge their risks.

3.22

Political problems in South Africa sparked off a rally in the prices of gold and other precious metals during the third quarter. Some renewed inflationary expectations, associated with falling interest rates and a weak US dollar, also contributed to the sharp price increases. The price of loco-London gold moved from US$346 per troy ounce at the end of June to above US$440 in the latter part of September, before closing the month at US$422. The price of gold at the movements. Chinese Gold and Silver Exchange showed similar At end-September, the price was HK$3,906 per tael.

(15) Total turnover in the Hang Seng stock index futures market :

(lots)

86 May

31,070

Jun

38,039

Jul

64,848

Aug

82,300

Sep

118,182

32

!