The Influence Analysis Of Hong Kong Financial Center

Hong Kong is one of the most important international financial centers in the world.It has excellent financial infrastructure and international market,but its economy is highly unstable,especially after the Asian financial crisis on 1997.This paper aims to analyze the impact of Hong Kong as an international financial center on its economy and make suggestions on the deficiencies.Hong Kong's regional economic development is closely related to the politics and economy situation of the mainland.The economic development of Hong Kong started as a trading port.The service industry of it,including the financial industry,had a well-developed foundation.Later,it developed light industry for geopolitical reasons.At present,Hong Kong has a stable position in international financial market.The influence of financial center on economic growth includes both the promotion of internal economic development,and the financial spillover effecton on region and even the country.It is difficult to comprehensively analyze and evaluate the influence of financial center on economic growth by simply analyzing internal or external influences.In view of this,this paper analyzes the financial impact on the economy of Hong Kong by both the internal impact,analyzing the industrial coupling level and the path of the industrial impact on the economy,and by outside analysis,fnancial spillover effect on the regional and even the national economic growth.Relevant to the above outline,the analysis of the internal influence is mainly around the coupling and coordination relationship between manufacturing industry and financial industry.When the financial and manufacturing sectors are highly coupled,resources can be allocated efficiently and can effectively promote economic growth.On the contrary,the low allocative efficiency of resource endowment will reduce the economic growth rate and even restrain the economic growth.The analysis of the coupling relationship of Hong Kong's financial and manufacturing industry finds that economic of Hong Kong grew rapidly in the 1980 s with the highly coupled level of this two industries.Accompanied by the mainland's capital shortfall due to the “reform and opening-up”policy,Hong Kong's financial industry developed rapidly in the 1990 s.At the same time,the low cost manufacturing migrated to the mainland.The development of financialindustry and the migration of manufacturing industry lead imbalances of.the economy structure.With the impact of several financial crises,Hong Kong's economic growth was less relative to that of the mainland,and it benefits less and less from the “reform and opening-up” policy.On the analysis of the external influence,Hong Kong,as an international financial centre,stimulated economic development of China through its financial spillover effect.However,with the rise of China's national financial center,Hong Kong's financial spillover effect capacity is obviously affected,and the influence capability of Hong Kong as an international financial center has declined.Obviously,Hong Kong needs to transform in different historical stages.At present,along with the further opening-up of China,Hong Kong has been brought new opportunities.With the hollow industrial structure,Hong Kong should develop more business with mainland.Although Hong Kong has made efforts to deepen cooperation in banking,insurance,securities and other financial businesses.The coupling degree of Hong Kong and the mainland economy is going down.In the trend of RMB internationalization,Hong Kong should continuously explore ways toservice mainland economy under the cooperation mechanisms at various levels such as “The Belt and Road” initiative,CEPA and the development of the Guangdong-Hong Kong-Macao Greater Bay Area.