The Feasibility Study Of Monetary Integration Between Hong Kong And Mainland China

In the global wave of economic integration, regional economic integration is also here. The current regional economic integration has already exceeded the level of trade cooperation, is toward financial and monetary integration in the development of the deep-seated. This paper studies the feasibility of monetary integration between Mainland China and Hong Kong.Hong Kong and Mainland China research the feasibility of monetary integration is of great significance, especially in the current financial crisis in rare circumstances. First: Internally, the implementation of integration to integrate both economic and financial resources, improve efficiency and enhance their competitiveness, to resolve the financial crisis in the negative impact and promote the internationalization of the CNY fully convertible and the process; from outside for can be increased in Asia and the world monetary system and monetary Construction of the right to speak, in order to lay the future of the Chinese currency to lay a strong foundation status.This paper believes that in order to achieve monetary integration on both sides must have the three conditions, namely the economic and financial conditions, political and legal conditions, and cultural conditions of the language. One of the conditions of economic and financial aspects of the most important are: economic and financial close contact, elements of market integration; exchange rate system integration, exchange rate stability; economic cycle synchronization and the symmetry of shocks; relatively near the level of economic development; economic The degree of openness and financial and so on.Based on the three conditions for setting the assessment system must set up the assessment criteria and the corresponding fraction. Article makes a assessment for the t distance of two current situation and analysis of future trends in an economic cycle and make a prediction.In this paper, the assessment of the status quo between the two places is 58 points total, Finally made a comprehensive analysis of under the action of various factors, draw a conclusion: Although Hong Kong and Mainland China in trade, finance, capital flows, etc. in close contact, the economic cycle also showed a high positive correlation between the two places to facilitate the circulation of currency also spontaneous and a coarse scale, but both the level of economic development there is a huge gap between different exchange rate regimes, in particular, are non-freely convertible CNY in nature, have made the establishment of a common currency area is currently a lack of basic conditions, it can not be hurried. However, after the next economic cycle, with the further development of the mainland's economy, economic and financial ties between the two places will be much closer, and all aspects of the conditions of a more sophisticated, assess the total value will reach 74-75 minutes,then the establishment of a common currency area will become a natural thing.