Worries about speculation in the secondary market of the Home Ownership Scheme (HOS) were dismissed yesterday by Secretary for Housing Dominic Wong Shing-wah. The number of flats resold before transactions were completed had risen from one in 1992 to 16 in 1995, then jumped to 108 last year, figures showed. But Mr Wong said the buying and selling of flats was a 'normal' and 'long-standing economic activity' in which the Government would not interfere. 'There is nothing illegal about it. We see no need for such economic activity to be controlled,' he said. Legislators had asked what measures the Government had adopted to curb speculative activities in HOS flats. Frederick Fung Kin-kee of the Association for Democracy and People's Livelihood said restrictions were necessary to keep flat prices down for future home buyers. Mr Wong said prices in the HOS and Private Sector Participation Scheme (PSPS) in the open market depended on location, although there were cases in December where prices had risen by 21 per cent since the beginning of last year. 'Prices of HOS and PSPS flats in the open market are influenced by the same factors as prices of flats in the private residential property market.'