TNAG-2127-FCO40-3037-Investment-in-Hong-Kong-1990 — Page 157

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32.

The

Securities and Futures Commission was

established as a new regulatory body outside the Government in May last year. The Stock Exchange and the Futures

reconstituted themselves. They

Exchange have both fully reconstituted

now have more broadly based and more representative

governing bodies, which include both local and

international interests. Both exchanges are now ready to

take on more fully their role as self-regulatory

organisations.

33.

The Stock Exchange has, for example, revised its domestic listing rules to ensure the quality of listing and adequate and timely disclosure of information by listed

companies. It has also considerably strengthened members' surveillance capabilities.

its

34.

Our objective in the's securities and futures

-

sector, as in the rest of the financial services sector, is to continue to develop efficient, orderly and fair markets of international repute. This does not mean we are losing

our taste for the free market approach. Let me stress that we are mindful of the dangers of over-regulation. We are determined to strike the right balance between devising the

controls necessary to preserve market integrity and

maintaining the freedom required if markets are to grow and

to innovate.

/35.

And we are