TNAG-1765-FCO40-2519-Hong-Kong-stock-market-and-exchange-rate-1989 — Page 197

1988-06-01

18:25

G. I.S

"

t

9

P. 11/13

should ensure

that the

exchanges properly

regulate their markets and should have

extensive reserve powers to intervene if they

fall down ❤M the job," The arguments for

this proposal are debated at leng th in

Chapter IX. Our principal reasons for moving

the Commission outside the civil service aze

to enable it to pay salary scales

appropriate to attract market practitioners

two

with expertise

in securities markets; and to

protect the Government. As we say in paza.

3.33 "IE the supervisor fails then, and only

then, should the Government step in;

Government

should

be

insulated

from

day-to-day market crises lest the authority

of Government be unnecessarily damaged."

In the rest of the report we address certain other

major issues especially

(1)

Listing

arrangements

for

new

Bhazes.

Chapters V and

XI.

We recommend that sole

responsibility

for approving

listing

documents be transferred to a reformed stock

Exchange Listing Department.