TNAG-1764-FCO40-2518-Hong-Kong-stock-market-and-exchange-rate-1988 — Page 111

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Annex II

Cont'd

After Effects

While the press reports highlighted Hong Kong's problems, they appeared alongside reports of similar difficulties being experienced in the UK and the USA and in other world financial

It is important markets. This helped to dull the effect.

to note that, with the wide representation of the UK national media in Hong Kong, the reports reflected feelings in Hong Kong

Now reaction in the UK. itself to a much larger extent than

that the dust has settled, current reports have tended to concentrate on the corrective steps being taken rather than harping on the causes of the problem.

Given the technical nature of the subject, and as the general public in the UK are less interested and involved in financial markets than in Hong Kong and other major cities, any damage which may have been caused would be restricted

The main complaints of the largely to the City of London. City, which appeared in the press at the time of the crisis but have not lingered, were about the closure of the markets and about the lack of representation of overseas financial institutions in the administration of Hong Kong's financial markets, in which they have substantial investments.

These institutions are very closely linked with their counterparts in Hong Kong and their long term view of Hong Kong's image will depend on actual improvements in the market situation rather than press reports about them.

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