Financial Co-operation Of The Pan-Pearl River Delta

In 2004, the Pan-Pearl River Delta (PPRD)region co-operation which is the largest region of China hitherto was started under the influence of the wave of economy globalized and regional economy integrated. The PPRD includes: Fujian Province, Jiangxi Province, Hunan Province, Guangdong Province, Guangxi Zhuang Autonomy Region, Hainan Province, Sichuan Province, Guizhou Province, Yunnan Province and two special administrative regions(SAR), Hongkong and Macao. It is named as "9+2" in short. It has two characteristics, one is that it's area is large and the other is that the relation between mainland and Hongkong and Macao will be deepened further since CEPA was implemented in 2003.The PPRD's economy and finance is dominant in the whole country. The local governments of PPRD signed the Framework Agreement ofPPRD's Co-operation in June, 2004. The financial institutes of nine provinces signed the memoire in Guangzhou to establish the harmony mechanism of the PPRD's financial co-operation in November, 2004. An important issue for the scholars to handle is how to intensify the financial co-operation in the PPRD in order to take effects of the financial industry's rules of medium, guidance and adjustment, and at the same time, how to grasp the opportunity to improve the competitive sbility of the regional financial industry.This thesis is composed by three parts due to the logical idea of theory, writer's assumption and analysis. The first part is the illumination of the theories. It explainis the PPRD's financial co-operation from four aspects, integration of regionaleconomy, the trade basis of modern financial industry, the international competitive sbility of the financial industry and the potential economical analysis of the financial trade's liberalization, attempting to inosculate the theories of regional economy and financial industry. The second part is the assumption of the PPRD's financial co-operation. On the basis of the reality, it gives the assumption that some provinces of the PPRD co-operate first, then the others will be concerned. It means that the Big-Pearl River Delta financial centre is ought to be constructed, eliminating the obstacles and regional protections and realizing the co-operation of the financial departments in the regional market gradually. The construction of the Big-Pearl River Delta financial centre is demonstrated in three fields, currency market, stock market and insurance market. For Guangdong Province, Hongkong and Macao, the co-operation of financial departments has. long existed, but it is facing many challenges now. The last part is the analysis of Game Theory. It analyzes from two aspects, region and local government, bank and enterprise. On the basis of the analysis, it gives the methods that the regional financial co-operation department how to achieve it's preference and the bank how to choose it's loan rate to reduce the repayment risk.