The chairman of the Hong Kong Futures Exchange (HKFE) yesterday backed down from earlier criticism of government intervention, saying the exchange 'wholeheartedly' supported the authorities.
Geoffrey Yeh Meou-tsen said after a board meeting that HKFE's board of directors had decided to support government moves to defend the local stock, futures and currency markets.
'I would like to make it clear that the exchange is not in confrontation with the Government,' he said. 'The exchange wholeheartedly shares the common objective among the Government and the people of Hong Kong to stabilise financial markets.
'The exchange supports the Government's efforts and is loyal to the common will of the Government and the people of Hong Kong to assure monetary stability.' Yesterday's comments contrasted starkly with a statement he made earlier to the Legislative Council's financial affairs panel, in which he strongly criticised the Government's action.
He said at the time: 'The proposed rule changes may lead the existing high turnover futures market to be turned into a market with no transactions at all.
'The drying up of the futures market would be to the disadvantage of Hong Kong as the business would go overseas.' He also warned the proposals would damage the local stock market.