TNAG-1606-FCO40-22121-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1987 — Page 70

Question No. 3

Dr Hon Daniel Tse, OBE, JP

In view of the fact that there is a considerable number of small business or service establishments commonly known as "Ground Floor Shops" carrying on trading of "loco-London Gold" by taking deposits from clients, will Government inform this Council what steps have been taken to protect members of the public from being cheated and to stop such activities from becoming a kind of illegal gambling?"

Sir,

REPLY BY THE HONOURABLE THE FINANCIAL SECRETARY IN LEGISLATIVE COUNCIL: WEDNESDAY 25 MARCH 1987

At present, most of the trading in Loco-London

Gold in Hong Kong is carried out by highly reputable

dealers. As far as I am aware, none has been the subject

of any complaint. These dealers rightly see it as being

in their best interest to conduct their affairs in a

prudent and honest manner. Their involvement is essential

to the continuing growth and prosperity of Hong Kong's

gold market, which is amongst the largest in the world.

2.

Nevertheless, we are aware that there is now a

less desirable fringe element in the market. A number of

individuals or small firms trade through minor retail

outlets, and this could possibly pose risks for the

smaller investor who might be tempted by the prospect of

quick and substantial profits to use these less reputable

dealers.

/3. Some complaints