TNAG-1765-FCO40-2519-Hong-Kong-stock-market-and-exchange-rate-1989 — Page 190

1988-06-01 19:21 G.I.S

1

P.04/13

and

and

correspondence with a whole host of overseas exchanges regulators, especially those in New York, Chicago and London. And finally a lot of thought, research and debate in which the Committee has been greatly helped by our staff

whose efforts we acknowledge at para. 2.27.

I Chapter

provides A

brief and

comprehensive

the state OE

overview OE Ouz report. Our principal conclusions about

affairs that obtained in Hong Kong before 19

As we October last year are set out in paras. 1.6 and 1.7.

gay in

para. 1.6. ".....the concept of self-regulation and market self-discipline had failed to develop in Hong Kong. what is equally unfortunate is that, faced with this, the supervisory bodies charged with overseeing the markets had We consider that all parties

lost effective control."

must bear some responsibility for this state of affairs : there were structural and operational defects with the two

exchanges,

the

two Commissions

and

the

Office OE

the

Commissioner for Securities.

These are summarised in para.

1.7.