The governor of China's central bank, Dai Xianglong, yesterday reiterated Beijing's support for the Hong Kong Government and its exchange rate policy but said the Asian turmoil was not yet over. 'The crisis may get more complicated and will continue to send shock waves through the Hong Kong stock market,' the People's Bank of China governor said. Mr Dai made his comments during a briefing in which he detailed sweeping reforms of the financial system and new measures to stimulate the mainland economy to offset the effects of the Asian currency crisis. He repeated his Government's support for the Hong Kong dollar peg, saying the SAR's economy was healthy, with ample reserves of foreign exchange, a budget surplus and an advanced regulatory system. 'We support the Government of the Hong Kong SAR in all its efforts to keep the stability of the Hong Kong dollar exchange rate and financial markets,' he said. However, Hong Kong would be affected by the Asian currency crisis, with real estate prices falling by about 30 per cent. 'Prices have been excessive in the past. A reasonable fall will help the competitiveness of Hong Kong,' he said. Mr Dai regretted the demise of Peregrine Investments Holdings, saying it had done much to help bring Chinese state companies to the stock market in Hong Kong. 'I feel a great sense of regret,' he said, adding that he believed parts of the company still had an important role to play. But Peregrine's demise would not influence the mainland's efforts to raise funds in Hong Kong, which would continue to welcome good Chinese state companies in accordance with market principles, he said. Peregrine was a pioneer in the listing of Chinese firms on the Hong Kong market, moving into the mainland at a time when other brokerages feared to enter. He also took time to mention troubled property developer Sino Land, saying it was a 'strong company'.