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HONGKONG.

REPORT OF THE STOCKS AND SHARES COMMISSION.

Laid before the Legislative Council by Command of His Excellency the Governor on the 22nd October, 1925.

No.

16 1925

SIR,

We, the Commissioners, appointed by Your Excellency by Proclamation dated the 14th August, 1925, to inquire into the arrangements at present existing in Hongkong for dealing in Stocks and Shares of Public Companies, have made due enquiries and beg to report as follows :

1. We held meetings on the 20th and 27th August, 3rd, 10th and 17th September, and heard evidence of the following gentlemen :-

On the 27th August, Mr. P. M. N. da Silva and Mr. J. T. Bagram.

On the 3rd September, Mr. Menino Fernandez, Mr. S. W. Ho and Mr. Soo Pei

Shao.

On the 10th September, Mr. W. J. Carroll, the Hon. Mr. C. McI. Messer and

Mr. José Pedro Braga.

On the 17th September, Mr. Lee Hysan, Mr. M. A. Razack and Mr. Joseph

Gould.

The minutes of our meetings and the evidence of these witnesses, attached to this report, form Appendices B, C, D, E and F. *

We also met on the 13th, 16th and 19th October to consider our report.

2. In addition we had certain memoranda submitted to us by Mr. J. P. Braga, Mr. F. H. Kew, Mr. P. M. N. da Silva, Mr. J. T. Bagram and Mr. Lee Hysan. These docu- ments are attached to this report and form Appendices G, H, J, K and L. *

PART I.

3. There are three Exchanges in Hongkong, namely: the Hongkong Stock Exchange, the Hongkong Sharebrokers' Association and the Share and Real Estate Brokers' Society of Hongkong. There are also many share brokers who are not members of any Exchange.

4. The Memorandum and Articles of Association of each of these three bodies are attached to this report and form Appendix A. *

The Rules and Regulations of the Loudon Stock Exchange are also enclosed.

5. The Hongkong Stock Exchange was originally formed in the year 1891 and took its present form in the year 1922 with a membership limited to 24.

6. On the 1st October, 1921, owing to the refusal of the Hongkong Stock Exchange to admit certain applicants a new Association came into being, namely: the Hongkong Sharebrokers Association, whose Memorandum and Articles of Association are practically identical with those of the Hongkong Stock Exchange.

* Not printed.