Hong Kong’s unified stock exchange opens for trading in 1986 – SCMP archive

raders prepare for the first day of trading on the floor of Hong Kong’s new stock exchange, April 2, 1986.

Photo: SCMP This article was first published on April 3, 1986.

By Jerry Norton Considering the historic nature of yesterday’s share market trading, a strong rally might have seemed appropriate.

Instead, the first session in the new unified stock exchange saw prices finish sharply down from Thursday’s close.

But most brokers still described themselves as well satisfied with the performance, despite the Hang Seng index closing the morning-only trading session 22.67 points down at 1,603.27.

Analysts generally thought it could have been much worse, considering the bearish news that came rolling in a week ago after the market finished its last pre-Easter session.

Dr Philip Wong, then-committee member in charge of the computer side of the stock exchange market.

Photo: SCMP On that Thursday, another round of Government intervention to prop up a local bank was announced, trade figures for February showing a significant export decline were released, the prime rate was raised by a full percentage point, and word came of further delays in the publication of the insider trading report related to International City Holdings.

With the first of those elements getting the lion’s share of the blame, Hongkong stocks were sold off in London that night to the equivalent of some 40 points on the Hang Seng index, although several later moved up from their lows.

Some bullishly inclined brokers said at the time they thought the London reaction was overdone.

They took the line that the Government action to aid Union Bank could be viewed as a plus, resolving uncertainty over the fate of that institution and reducing fears of a damaging bank run in the territory.

Presumably, those sharing that view would have felt even more reassured after statements on Tuesday by the Financial Secretary and Banking Commissioner indicating they would continue to act in the future to minimise the possibility of either bank collapses or runs.

A positive interpretation of the trade figures could also be found, arguing that a reported increase in imports largely reflected materials and components needed to meet fat orders for the future.

Traders prepare for the first day of trading on the floor of Hong Kong’s new stock exchange, April 2, 1986.

Photo: SCMP The prime rate rise had been widely discounted, the bulls said, and could help firm up the Hongkong dollar, diminishing selling of

原文链接: 南华早报