TNAG-1728-FCO40-2441-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 155

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C. CHAN.

Mr. CHAN Kam-chuen:

but

and

Sir, an abundance of material/figures have again been supplied the time for one's speech is limited. I shall, therefore,

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speak only on a few points.

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The economy. Our US pollar linked prices have attracted more orders

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than we can produce in Hong Kong and the surplus orders are spilling

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over into mainland China and has created over one million jobs there. As long as the cost of labour and material in depreciated RMB prices

Carr

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is commensurate with the Hong Kong dollar, we still harvest profit, in the short term. In the long term, inflation and competition in China may

sophisticated erode our profit margin. We must invest more in service equipment, transfer of technology and training of staff to transform our

manufacturing sector from a labour intensive one to a capital

ond

intensive with higher technology. [The October, 1987, crash with

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four days closure of the stock and related markets is unprecedented in

suffert. Hong Kong. Not only the speculators betting on the wrong side separate, but the man-in-the-street who has made a deposit for the purchase of some property and was feeling sure that he can get money the next day to pay the balance by selling his shares is also caught by this stoppage/

amp

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He has lost his deposit and is caught in a legal battle.

What is past

The Government is past and there is no use crying over spilt milk. must take all necessary steps to restore the confidence of investors, large or small, in the stock market which is of paramount importance. Until this is done, small investors will use the FOREX and property markets to invest their savings, Hence the boom.

28 was still a good year.

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All in all, 1987

HR

Hong Kong Dollar. I strongly support the Hong Kong dollar $7.80 to a < US Dollar link, which is not only beneficial to our economy but also provides the stability so vital to our economy during this transition

US $1 period. Before

Before we link our dollar at $7.80 to one doba on

on 17th October 1983, our free floating dollar hit $9.60 to a US dollar

and Hong Kong people clean out the daily necessities from the supermarket racks. From the above figures, our dollar has appreciated $1.80 or

lc.