OVERSEAS investors may have found reason to pour their pounds, francs, marks and dollars into the local market this week but their optimism on the political front is not shared universally.
The Hang Seng Index may have put on almost 350 points - a rise of 6.2 per cent - but the belief that a settlement of the Sino-British dispute lies around the corner may prove a little premature.
Hongkong Bank's own economic research department pointed out yesterday that the controversy over the territory's future political structure was unlikely to be resolved quickly, as the legislature would take several months to decide on the proposals to widen the voting franchise for the 1995 Legislative Council elections.
The issues will probably continue to loom large for some time and limit local stock market activity, but if a speedy resolution to the dispute can be found, Hongkong's market will deserve a re-rating by investors.
- NICK THOMPSON
