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To: Sonny McWilliams who wrote (15927)	1/12/1998 5:18:00 AM
From: Frank Ellis Morris	Read Replies (1) \| Respond to of 27012

Good Morning Sonny, I see that SI has announced that it was or is under attact and that they are doing all they can to keep running. It looks like a major collaspe has taken hold of the Hong Kong market as the market suffered an 8% or more man 700 point decline over night. I think it is possible that we could be in some real trouble this morning when our markets here reopen.I have not been buying anything for quite some time but holding on for dear life. The Asian crisis has become so serious that it is crippling confidence and stirring panic world wide. Fasten your seat belt as this day may not be one so enjoyable. Monday January 12, 4:47 am Eastern Time HK's Hang Seng ends sharply off on Peregrine news HONG KONG, Jan 12 (Reuters) - Hong Kong stocks tumbled on Monday, rocked by higher local interest rates and news that Peregrine Investments Holdings Ltd (OTC BB:PGIQY - news; 0090.HK) may be heading for liquidation, brokers said. The Hang Seng Index plunged 773.58 points, or 8.70 percent, to close at 8,121.06 after hitting a low of 7,909.13, its lowest level since March 1995. It was the sixth largest drop in terms of points since 1970. The Hang Seng Index has lost more than half its value since it reached its highest level of 16,820.31 on August 7, 1997. ''There's been probably a little bit of overshooting,'' said Steven Thompson, chief analyst at Nikko Research Center (HK). ''It's very oversold, and there will be another chance of a technical rebound.'' Selling was across the board and only nine issues advanced against 517 issues declining. Turnover finished at HK$13.33 billion. China plays suffered the heaviest blow with the China-Affiliated Corporation Index diving 21.92 percent to 964.50 and H-shares ending off 16.18 percent at 445.08 after hitting a new historical low of 431.98. Share prices were severely beaten by the Peregrine news, brokers said. ''Peregrine has been seen in the market as having close relations to some of the red chips and H-shares companies,'' said Frederick Tsang, head of research at PrimeEast Securities. ''There are speculations that some of the clients might need to sell positions.'' He added that the possible liquidation of Peregrine might make other banks tighten lending requirements for smaller companies. Surging local interbank rates cast a bearish shadow over the market. The benchmark three-month Hong Kong Interbank Offered Rate (HIBOR) was at 18.50 percent at 0330 GMT compared with 15.50 percent on Friday. Major Hong Kong banks hiked their prime lending rates by 75 basis points to 10.25 percent on Friday in response to higher interbank rates and brokers said there was speculation another rise might be on the cards. Turmoil in the region also scared investors off with share prices in Singapore slumping nearly nine percent and the Thai baht hitting record lows. Wall Street's fall on Friday did little to improve sentiment and brokers worried that the Dow industrials may be in for further losses. ''There's still a feeling that Wall Street hasn't woken up yet and realised what's going on here,'' Thompson said. HSBC Holdings was the biggest loser, diving HK$9.50 to HK$158.50. Sun Hung Kai Properties (0016.HK) followed suit, ending down HK$6.40 at HK$33.10 while competitor Cheung Kong (0001.HK) lost HK$4.20 to HK$33.60. Among red chips China Resources (0291.HK) sank HK$2.35 to HK$9.40 and Shanghai Industrials (0363.HK) closed off HK$4.10 at HK$17.00. Take care Frank