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To: TREND1 who wrote (12969)	1/11/1998 6:17:00 PM
From: gianelda	Respond to of 18056

THE Hong Kong Trigger read today's FT headline on HK direction biz.yahoo.com monday's call for calm in HK : Monday January 12 1998 Sir Donald calls for market calm DAVID IBISON Financial Secretary Sir Donald Tsang Yam-kuen made another plea for stock market calm yesterday, urging investors to react rationally to the likely collapse of Peregrine Investments Holdings and Friday's interest rate increases. The comments form part of a concerted attempt by Sir Donald and Chief Secretary Anson Chan Fang On-sang to quell fears of a severe market correction this morning. Hopes Peregrine would broker a rescue deal with a potential "white knight" faded last night with industry sources saying that "short of a miracle" the investment house would be liquidated today. Any collapse is expected to increase fears the economic crisis will claim more victims in Hong Kong and further undermine investor confidence. There are also increased fears of a renewed attack on the Hong Kong dollar combined with potential capital flight by local investors. Sir Donald said the interest rate rises should not have too severe an impact on the market. The Hang Seng Index plunged 16.7 per cent, or 1,785.93 points, last week to close at a more than two-year low of 8,894.64. Peregrine's financial difficulties spurred a 6 per cent drop in Hong Kong shares trading in London Friday, with the Hang Seng London Reference Index plunging 526.72 points to 8,367.92.