27 April 2000
New Zealand Welcomes Stock Exchange Delegates

Finance Minister Dr Michael Cullen welcomed over 100 delegates from East Asia and Pacific stock exchanges at Parliament today.

Dr Cullen said New Zealand is playing host for the first time to the Federation at an important stage for both the development of the Asia Pacific region and for financial markets around the world.

"It is an important time for the examination of the nature and work of the international financial and equities markets, and even more, for the process of international co-operation and economic integration."
Dr Cullen cautioned the Assembly against the dangers of short-term capital movement. "We want to see a sensible and balanced approach to international rule making. The fact that the recovery from the Asian crisis of 1998 has been faster than anticipated should not blind us to the reality that highly mobile, opportunistic capital is still capable of doing great damage.

"We should not seek to stop the operations of the natural self-correcting mechanisms of markets. Nor should we seek to protect people against their own incompetence and even dishonesty in financial dealings. A sane and rational world order ought not to be one in which the populations of whole nations are held to ransom by short-term capital movements."

Dr Cullen said the conference came at a time when the future of the New Zealand stock exchange was under scrutiny, with some commentators predicting a merger with Australia. Whatever the outcome of the debate, a growing co-operation between sharemarkets is likely he said.

ENDS

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