TNAG-2306-FCO40-3340-Future-of-Hong-Kong-stock-market-and-exchange-rate-1991 — Page 103

CONFIDENTIAL

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Concel practicioners invertors

practicowen

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foreign

investin

LORD CAITHNESS MEETING WITH MR HAY DAVISON, 9 JANUARY

Points to Make

needs to b strong

-

top to shares up to 50% of

ир

monke

900 Stockbrokers retail street Made

local eve

Gand

One the an

At time of 1987 Stock Market crash Hong Kong appears to have been extremely under-regulated compared to most other

-modelled on us systa not UK financial centres. Securities and Futures 'Commission (SFC)

-

set up as a result of your recommendations have had a

lot of catching up to do. Do you think Hong Kong has now got the balance of regulation about right or is it in danger of over-regulating its markets?

-

Loversy eatery i keret above toage.

Spassport.

84 companie want a Mkt rules must affly

tq

HK should

Does resistance from local vested interests told sheye institutional reform of the Hong Kong Stock Exchange, still

Buybacks

Takeover

any listy bust abide pose a serious threat to Hong Kong's reputation as a

international financial centre.

-

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Head of bistry Head of Inveilig =

has

"a

both need to be in corruptable.

Rended settlement

system not

yet done.

Growing number of Hong Kong companies redomiciling in other jurisdictions is a matter of particular concern.

Henry Keswick has said he will delist if Hong Kong authorities extend their investor protection requirements to redomiciled companies. Is extraterritoriality just a piece of special pleading by Jardines or is it a genuine problem which could affect other companies? Has Henry Keswick already made up his mind to delist? Are his allegations about extraterritoriality to provide a public pretext for

such a move?

If Jardines were to delist from Hong Kong, how seriously

would this undermine confidence in Hong Kong's role as a

regional/international financial centre? Is there a risk that other Hong Kong companies with international assets might follow suit?

MARAHG/1

CONFIDENTIAL

Futures Communi's com Сельской сой

Now dead Elsed to future of Hery Seng