The Heng Seng Index free falls.

by

Chang Cheuk-Lap ---Special HK Correspondent

The HS drops like a rock! There are quite a few specialists in this field expressing their opinions as follows;

1) The economic environments in Asia went down already for a while with noticeable effect, and HK is the exception

2) They affect HK by: a) competition in the import / export business- in exchange rate b) less tourist business from this area even Japanese says shopping, food and hotel fees are expensive in Hong Kong.

3) The market has been up for a long time with no reasons at all.

4) Morgan Stanley: said yesterday that they will reduce holding HK shares to zero

5) HK government officials stand up to give a word to protect HK dollars- a counter effect at that.

6) HK CEO, Mr. Tung, has "unannounced" policies on the control of prices of the real estate market.

These are the words from the newspaper. Looks like we may see an economic down-turn.