The Bermuda Monetary Authority may have boosted the image of Bermuda institutions that have offices in the Far East through meetings with regulators and supervisors of Asian financial institutions. In Asian countries, Government backing brings more prestige to privately held concerns.

The mere fact that Pacific Rim authorities learned first-hand that Bermuda companies operating in their sector were highly regarded by Bermuda authorities lent more credibility to those firms. Through those same meetings, any local concerns about the effect on Bermuda institutions from Hong Kong's 1997 return to The People's Republic of China appear to be eliminated. Local officials said that not only were they now a lot happier about Hong Kong's future, but optimistic about the future of China. Meanwhile, there are hundreds of Asian mutual fund companies that are on the Bermuda Stock Exchange. And the BMA said this week they may be in a better position to fulfil their supervisory function for the Exchange, as it relates to the vetting of such Asian companies, through their strengthened association with Asian stock exchanges. A delegation from the Authority led by chairman Mr.

Mansfield Brock last month cemented relationships with their supervisory counterparts in Singapore, Hong Kong and China, by spending a week with them.

They also met with Asian branch office officials of the Bank of Bermuda, the Bank of Butterfield, and law firms Appleby, Spurling & Kempe and Conyers, Dill & Pearman. Those meetings may be more helpful in future considerations for Bermuda business development in terms of international expansion. The visit to the Singapore Monetary Authority and the Hong Kong Monetary Authority was to continue a working relationship in the supervision of the Bermuda bank branches and trust companies. Officials from the Singapore and Hong Kong Monetary Authorities, the Hong Kong Stock Exchange and the Securities and Futures Commission have all visited Bermuda in the past. Local authorities thought it was about time they went east to further cultivate relationships.

In China, Mr. Brock quite bluntly asked authorities if there would be changes affecting Bermuda interests in Hong Kong and was told with no uncertainty that such non-Chinese investment was encouraged. BMA officials were equally happy that they'd established a relationship with the very Beijing authorities who will be taking over ultimate responsibility for Hong Kong, even though there will be a special administrative arrangement for the area. "We were assured by the authorities in China that the status quo in Hong Kong will continue,'' said Mr. Brock, "and that it will be business as usual, as far as the financial institutions in Hong Kong are concerned. "The Hong Kong Monetary Authority will continue to operate as it has done in the past. That was a very useful reassurance.'' BMA general manager Mr. Malcolm Williams added, "Two of our banks have very significant operations in Hong Kong, very significant indeed. And we wanted to be sure that after 1997 our banks would be, as far as we can tell, as safe as they are now.'' Mr. Brock added, "We wanted to begin a relationship with the Chinese authorities, so that we can continue to carry out all of our duties as the primary supervisor of those banks after 1997.

"We wanted to be sure that we had not just a relationship with the Hong Kong Monetary Authority, but that the people in Beijing knew us.'' Mr. Williams noted: "Those in the Hong Kong Monetary Authority were very pleased to hear that we were going to visit China and they helped us in many ways to meet the right people. "It was very indicative of the importance which China gave our visit that in meeting with some very senior people, all of the meetings were conducted in Chinese, the highest compliment you can give a visitor.'' The Hong Kong Monetary Authority had been established with the concurrence of the Chinese authorities, replacing a collection of authorities in the area, as the Chinese plan for the future. The People's Bank of China will be the central bank, with the Hong Kong Monetary Authority looking after Hong Kong, the international arm of China, while the Shanghai Stock Exchange will be built up to complement the Hong Kong Stock Exchange. Obviously, the planning for Hong Kong's inclusion in an awakening China is extensive. Mr. Brock said that he did not share the view that China would make any substantial changes that would detract from Hong Kong, once they resume control in 1997. While visiting with senior officials at the ministry of finance, the People's Bank of China, the Bank of China, the Shanghai Stock Exchange and the China Foreign Exchange Trade System, he said he saw a genuine interest in improving the lot of the average citizen. Said Mr. Brock: "They see Hong Kong as their window to international trade, and they recognise that it is only through international trade that China will be able to grow and prosper. So I came out optimistic about the future of Hong Kong and China. They are intent on growing their economy.'' In China, virtually all the business is owned by the government. It has a 65/35 rule in which the state always owns the larger share and the other 35 percent can be held by any private investor, domestic or foreign. Chinese authorities at the People's Bank of China were very interested in knowing more about Bermuda's insurance industry, because as the central bank, they are also supervisor of China's insurance industry. Said Mr. Brock, "There is, and has been for years, a joint venture between American International Group and the People's Insurance Company of China, which is incorporated and run from Bermuda. The People's Insurance Company is a state-owned insurance company.

"The People's Bank knew about the company, and, in fact, knew more about Bermuda, our insurance market, and even things like per capita income, than we ever expected.'' Mr. Mansfield Brock CONFERERNCE CON