15.
The pressure of demand and the resulting labour
shortages set in train the adjustment process, which is bringing about a gradual slowdown in the growth rate of the
economy. In the later part of last year, the growth rate of our
exports eased somewhat, and more recently there have been some
signs that the pressure of demand on resources is beginning to
slacken.
16.
The events of last
last October in
in the world's stock
markets may have lessened some of the pressure on resources and
thus shortened this adjustment process in our economy. Before I
leave monetary and economic matters, therefore, I must say a few
words about our own securities market. Much has been written
and said about the crash and its implications. What took place
in our market was in part a response to world events. The sharp
falls were not a reflection of weaknesses in our economy.
Nevertheless, there is no doubt that our systems were shown to be less than adequate, and it was for this reason, Sir, that you appointed the Securities Review Committee to examine critically
the relevant structures and systems with a view to recommending improvements. We in Hong Kong are not alone in recognising the
need to draw lessons from the crash. Other major markets, including London and New York, are conducting somewhat similar
reviews. Our Securities Review Committee, under the able
chairmanship of Mr Ian Hay Davison, is now hard at work and we look forward to its report.
/17. In
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