China urges Asian ties to fight currency turmoil<\/p>\n
SINGAPORE (Reuter): China and member states of the Association
\nof Southeast Asian Nations (ASEAN) should strengthen ties to
\nfight against speculative attacks on their currencies, Chinese
\nPremier Li Peng said yesterday.<\/p>\n
\"China and the ASEAN countries need to strengthen coordination
\nand cooperation in the financial field,\" Li told a group of
\nbusinessmen in Singapore during a three-day visit.<\/p>\n
ASEAN groups Brunei, Myanmar, Indonesia, Laos, Malaysia, the
\nPhilippines, Singapore, Thailand and Vietnam. Together they make
\nup China's fifth largest trading partner, with trade tripling to
\nUS$20.4 billion in 1996 from 1990.<\/p>\n
\"One reason for the recent currency crisis, in my view, is
\ninternational speculation, and the other is the bubble economy,\"
\nLi told the businessmen shortly before he was due to fly home to
\nBeijing.<\/p>\n
\"Sales in the property market outstripped demand,\" he said
\nwithout elaborating.<\/p>\n
Despite Southeast Asia's rapid economic growth, it's economic
\nstrength was still relatively weak and its financial systems were
\ninadequate, Li said.<\/p>\n
That meant it bore \"certain financial risks, which make it
\nsusceptible to the impact of the turbulence of the international
\nfinancial market in the course of its development,\" Li said.<\/p>\n
\"We should intensify our coordination and cooperation in the
\nfield of finance and step up exchanges of information to keep
\neach other informed so as to ward off international financial
\nspeculation,\" he said.<\/p>\n
Thailand was the first target of currency speculators in May,
\ntriggering an economic crisis in which it became clear that many
\nfinancial institutions had over-invested in property.<\/p>\n
China, a so-called dialogue partner of ASEAN, has contributed
\n$1.0 billion to a $16.7 billion, International Monetary Fund-led
\ninternational bailout package for Thailand.<\/p>\n
Malaysia, Indonesia and the Philippines have also seen a
\nselldown in their currencies over the past two months.<\/p>\n
However, Li said Hong Kong, which Britain returned to Chinese
\nrule on July 1, has the economic power and foreign reserves to
\nhandle the currency crisis.<\/p>\n
\"Under the 'one country two systems' formula, Hong Kong
\nhandles its own economy completely,\" Li said. \"But Hong Kong has
\nadequate foreign reserves and is closely linked with China. I
\nhave not seen any major fluctuations in Hong Kong so far.\"<\/p>\n
Earlier on Tuesday, Hong Kong Financial Secretary Donald Tsang
\ntold a media conference in Sydney that the Hong Kong dollar had
\nmoved less than 0.2 percent during the recent Asian currency
\nturmoil.<\/p>\n
Li, leading a 115-member delegation, arrived in Singapore on
\nSunday after a four-day visit in Malaysia.<\/p>\n
He also met Singapore President Ong Teng Cheong and Prime
\nMinister Goh Chok Tong and was due to meet Senior Minister Lee
\nKuan Kew, who was Singapore's prime minister for more than 30
\nyears.<\/p>",
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