Following is the transcript of a media session given by the Chief Executive, Mr Tung Chee Hwa, after attending the ExCo meeting this morning:

Question: (on stock market)

Mr Tung: I said earlier on that the financial market in Southeast Asia had gone through a rather difficult period. But as far as Hong Kong is concerned, the fundamentals are very sound. Recently, many of the companies here reported good results, good financial results. We have very good regulation, very transparent regulation. Many of the international investors when they want to create liquidity for themselves, they know they can rely on Hong Kong as a market. Perhaps as a result of that our shares also fell but I think the fact that we have performed very well in terms of liquidity, in terms of what investors can see, in terms of regulation and transparency would put us in good stead with the investors. Market will not fall forever. I think when we bounce up we are the first to benefit.