• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Hong Kong must move with the times by making itself an efficient platform for Mainland financial intermediation.

Extracts from this document...

Introduction

Moving with the Times Hong Kong must move with the times by making itself an efficient platform for Mainland financial intermediation. A number of journalists with specialised interests in financial developments in Hong Kong asked for my interpretation of the "move with the times" speech delivered by the Governor of the People's Bank of China, Zhou Xiaochuan at the Annual Dinner of the Hong Kong Association of Banks on 30 September 2005. The "move with the times" comment was made by Governor Zhou in relation to maintaining the status of Hong Kong as an international financial centre. We should of course all move with the times and be alert to changes taking place around us if we do not wish to be left behind. This comment has a universal application and is particularly important when times are changing rapidly. Those with the ability to anticipate changes and prepare for them stand a much higher chance of success. ...read more.

Middle

I take this to mean that there is an exceedingly large amount (relative to GDP) of domestic savings on the Mainland to be mobilised and channelled into the hands of those raising money to finance activities that promote economic growth and development. The question is how this should be done. Second, there has been a net inflow of foreign direct investment into the Mainland and, presumably because there is plenty of liquidity, the Mainland authorities are beginning to encourage domestic savings to "move out". I take this to mean that there is more than enough money around: so much that it is storing up potentially difficult tasks for monetary management if the undesirable monetary consequences of high savings combined with capital inflow are to be contained. There is therefore a need for a policy shift away from a preference for capital inflow to encouraging domestic savings to "move out". The questions here are many - the crucial ones are again how to do it; what sequence to adopt in capital account liberalisation; how the associated risks are to be managed; and, I suspect, how to manage the political process. ...read more.

Conclusion

It is also clear to me what our strategy should be. For financial services that have to be provided on location, for example retail banking, we should try to improve access by Hong Kong financial institutions to the Mainland. For financial services that do not need to be provided on location, for example those of capital markets, we should improve the infrastructure of the Hong Kong financial system to make it better able to match the needs of those on the Mainland who have money to invest with the needs of those who want to raise money. While we in Hong Kong prepare and position ourselves to move with the times, including for example the development of renminbi business in Hong Kong, (or more precisely developing our ability to handle financial transactions in renminbi), there are pre-conditions crucial to our success. We await with considerable enthusiasm favourable developments on those fronts. If I may be allowed to use a Cantonese slang expression to conclude: just "let the horse come through" ("horse" in Chinese has the same sound as "chips", which is a slang term for "money"). ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Accounting & Finance section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Accounting & Finance essays

  1. This report has been produced as evidence for Unit 9 - 'Financial Services' - ...

    Real annual stock returns have been in excess of 6% during the same period. The main London stock market index (the FTSE All Share Index) was launched in April 1962 and its opening base of 100 points has risen since then to more than 2,000 - in late 2002 it stood at 2,100, even after its recent poor performance.

  2. Investigating financial control for a new restaurant.

    Goods received note- This list items purchased, the purchaser informs the seller if there are any shortages or damages. Receipt- This is issued to confirm that the purchaser has actually bought and paid for product. Delivery Note- accompanies the goads which are signed by the purchaser in proof of delivery.

  1. What does Finance involve.

    Fresh ingredients such as, lemon, mint, fruits etc. (this may need to be brought after some days as it can go off in a short amount of time) 40 different types Max �0.80 each type �32.00 www.asda.com I am going for Asda because the prices are slightly less then Sainsbury's

  2. Complete Report on Askari Commercial Bank

    Legal Affairs Department The legal affairs department (LAD) is responsible for effectively managing all legal matters pertaining to the bank, and to protect the bank's and trusts in this regard in order to achieve the above, the functions performed by LAD cover a white spectrum: rendering opinions on applicable

  1. Financial Services

    He occasionally goes to visit his parents during weekends. At the moment Martin doesn't have a car, so heuses London Transport, and spends up to�50.00 every month as he buys a weekly travel card, he prefers to buy a travel card as he goes out during weekends too. Martin had been given a student loan when he was at

  2. The role of a conceptual framework

    or even "develop...........future accounting standards", (Thomas, A. (2002), Introduction to Financial Accounting, Fourth Edition, McGraw - Hill, Maidenhead, pg.494) Another purpose of the conceptual framework is that it provides information to people who are interested in the work of the IASB in terms of how standards are produced , what process the standards goes in order to

  1. Financial Services

    Another way I managed to get hold of information is through the library books. Task 1; Analysis of two personal customer's income & expenditure in the form of a personal budget and an assessment of their financial needs 1st customer Graduate from university The first person I will be talking

  2. theory of banking

    transact at the interest rate of i2 for a given volume of OA. In fact, the existence of banks indicates that direct deals are not costless than the intermediation costs paid to the banks. Why using banks is a more cheap way than individuals and why the society wants to pay for their services.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work