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particularly if its relationship with China upto and after 1997
deteriorated.
Technology (including computer, telecoms technology and settlement systems]
3.19
In general electronic technology can be regarded as highly mobile in the sense that it can be installed easily in most locations to the level of specification which companies and governments are prepared to pay for. Both Hong Kong and Singapore have highly developed telecoms systems and financial sector companies whose operations are highly automated.
3.20 In the area of settlement and trading systems Singapore had taken a considerable lead over Hong Kong, with both electronic settlement and trading in the stock market. However, Hong Kong is now catching up, with electronic settlement in the stock market planned to begin soon. A side effect of Singapore's advanced settlement and trading systems has been that it has had a reputation as one of the costliest securities markets in the world.
not fair-
BELI'S quation
Contude uk
at fault.
(ii) The Operating Environment for Financial Sector Companies
Regulatory Environment and Financial Sector Scandals
3.21 One of the perceived strengths of Hong Kong, particularly over Singapore, is a regulatory framework which has tended to emphasise non-intervention. The Singaporean authorities have historically take a strong controlling interest in regulation, in all walks of life! Hong Kong's regime has, however, caused Hong Kong problems including the problems associated with the collapse of the stock exchange in 1987 and the problems generated more recently by BCCHK. These may have blemished Hong Kong's reputation relative to Singapore although even the latter has not escaped financial scandals; perhaps most notable was the closure of the Singapore stock exchange for three days in 1985 in the aftermath of the collapse of a company, Pan- Electric, to which several stock brokers had large forward contracts exposures. Until the 1987 world stock exchange collapse, Singapore was largely characterised by its tightness, Hong Kong by its laxity of supervision. Hong Kong's stance was seen as a positive factor in its attractiveness to banks and other companies in the region and "competition in laxity" was seen as a possible temptation to other emerging centres in the region. This is probably no longer the case
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