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Research On The Improvement Of Hong Kong's Linked Exchange Rate System

Posted on:2004-07-18Degree:MasterType:Thesis
Country:ChinaCandidate:Y W HuangFull Text:PDF
GTID:2156360125459701Subject:International finance
Abstract/Summary:PDF Full Text Request
Hong Kong is an international financial centre, role as a free port and opening to the worldwide. Since the internal and external change of environment, Hong Kong had amended the foreign exchange system for several times in order to improve it. The ultimate purpose is leading Hong Kong develop stably. However, the argument about Hong Kong's foreign exchange system had not been stopped for 20 years long. Should it be cancelled or not, how to improve it and should it be related to US dollar etc still in discussing since 1983. The linked rate system is facing the great challenge after the Asia Crisis. The crisis still brings a great effect to HK society such as influence to HK's economy; stock market falls down, high unemployment rate, and made the investor lost their confidence in HK.However, most of the international investors and HK citizens had shpwn deeply concerned about the linked rate system since the Argentina. Crisis happened. It also compare with the situation in HK. Some studies reported that, most of the countries in used of the fixed linked rate system. In addition, the side effects cause by the run off of financial store, SARS disease, decrease of the commodity price for the several years, complaint for the SAR government and leaders etc. Those problems arouse the sounds of cancelled the linked rate system in HK. In fact, the purpose is to make the HK dollar to be devaluated, increase the foreign investment, in order to solve the unemployment situation, unstable of commodity price and place economy etc.As the new policy perform to HK, such as the "individual visit" to HK and CEPA etc, it brings a lot of chances in cooperate with Mainland China. Moreover, the cooperation between HK and the Pearl River Delta area, it also let us foresee the country economic and currency policy are become integration.This thesis is going to analyze the economic structure of HK, the characteristic of linked exchange rate system, the effect of financial and currency crisis, and also how to improve the linked rate system. Furthermore, to analyze how the cooperation between HK and Pearl River Delta area had been started, and the close relationship involve in mainland China. In order to achieve the long term purpose of using RMB in HK in the near future, improve the linked exchange rate system is necessary. On the other hand, it also means that, HK and China could be integration while RMB become one of the international currencies.
Keywords/Search Tags:HK economy, exchange system, linked rate system, currency crisis.
PDF Full Text Request
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