CONFIDENTIAL
It is difficult to predict the impact of delisting. The possibility has been public for sometime and has
probably been largely discounted in the market. But the Jardines Group does comprise some 10% of the market capitalisation and their removal would affect turnover and the status of the Exchange. Perhaps more important is the possible ripple effect to other companies in the same position. If Jardines were to delist it would clearly be preferable for them to do so without attacking the Hong Kong Government or the Governor (as Mr Keswick has done in the past).
The matter falls entirely within the responsibility of HKG, the Stock Exchange and regulatory authorities. We are in close touch with HKG about it and recommend against the Prime Minister raising it with the Governor. If asked it, he could say:
Hope that suitable arrangements for companies like Jardines can be worked out.
But this is a matter for Hong Kong Government, Securities and Futures Commission and Stock Exchange.
Whatever result should not, I hope, affect Hong Kong's position as an international financial centre.
Ougeven
J S Wall Esq
10 Downing Street
CONFIDENTIAL
(8 L Gass)
Private Secretary
No comments yet.
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