Asian stock markets call for stronger rules

Asian stock markets call for stronger rules

SINGAPORE (AP): Asian stock exchange chiefs meeting at an
economic summit Wednesday pledged more transparency and a
stronger regulatory framework to rein in increasingly volatile
financial markets and hasten recovery.

"There are serious concerns about transparency," said Michael
Shepherd, vice chairman of the Australian Stock Exchange. "The
perception is that it's risky to invest here."

Other stock exchange leaders agreed, detailing plans to more
carefully manage their markets in the interest of fairness and
bringing back wary investors.

However, only the chairman of Thailand's Stock Exchange,
Amaret Sila-on, was willing to predict a domestic upturn within
the next 12 months.

"Strict supervision of brokerage firms can be an effective
tool to boost investors' confidence," said Amaret. Because of new
regulations and enforcement, "We will be in much better shape
coming out of this recession that when this financial turmoil
began."

Several central bank governors, meeting in a separate panel,
said they expect increased restrictions to be placed on hedge
funds, which speculate on currency instability and have been
blamed for sudden, disastrous devaluations in Indonesia, Malaysia
and Thailand.

"It is no longer relevant to talk about the Asian economic
situation. The region continues to be affected by global
developments," U.S. Assistant Secretary of State Stanley Roth
told reporters. He said many conference participants had agreed
on "the urgent necessity for leadership" by the Group of Seven
major industrialized nations.

Participants expressed concern about the drift of the world
economy and the growing risk of global recession. They called on
the Group of Seven to establish a new regime for monitoring,
disclosure and regulation of highly leveraged short-term
financial flows and other potentially volatile transactions.

Some of those ideas were expressed in a 15-point action plan
adopted Tuesday by the economists, officials and businessmen at
the East Asia Economic Summit, organized by the World Economic
Forum, a private agency based in Switzerland.

"Our aim is an open, orderly and efficient market," said Lee
Hon Chiu, chairman of the Stock Exchange of Hong Kong. He said it
was time to "establish a sort of international supervision" of
markets.