Comparisions And Inspiration Of Financial Services Trade Competitiveness Between The Mainland And Hongkong

Since the reform and opening up, Hong Kong has been an important trading partner for the Mainland, makeing outstanding contributions to listing,financing and marketing overseas of Mainland enterprises. With the liberalization of trade in services, the trend of economic integration between the Mainland and Hong Kong has expanded further to the service trade, the both two sides continue to strengthen cooperation and exchanges through a series of policies , so financial services trade based on modern service also integrates into this trend of penetration, having broad prospects and significance. In the light of Based on financial services trade statistics system characteristics and the results and lack of previous studies, this article uses the share of financial services trade, TC index, RCA index, intra-industry trade index, NRCA index,financial services trade openness, foreign-funded financial institution's assets and operating income, as well as the number of foreign financial institutions and market structure, etc.to comparatively analyze financial services trade competitiveness between the Mainland and Hong Kong from cross-border supply and commercial presence modes respectively by time-series data.The study found that the financial services trade competitiveness of the Mainland under two modes are both lagging behind Hong Kong,and it is difficult to reverse this situation in the short term, but this also means that the Mainland's financial service trade has the potential room for development. Further to this situation,the competitive disadvantage in insurance service Trade has become the major source of the Mainland's financial services trade deficit disadvantage, while Hong Kong's insurance service trade shows a smaller deficit disadvantage and the downward trend in its competitiveness,and is facing fierce competition from foreign-funded insurance institutions especially in life insurance business market; in regard to, Banks and other financial services trade competitiveness, Hong Kong has a strong competitive edge. After the end of the transitional period of joining to the WTO ,both of their financial services trades are faced with increasing external challenges. On the one hand, the low-level situation in the Mainland's financial services trade competitiveness calls for urgent improvement in order to cope with the impact and challenges broughet by the full liberalization of the financial services industry, and guide foreign-funded financial institutions to develop to a more favorable direction for the Mainland's financial services industry; on the other hand, under economic globalization, financial institutions are dependent each other,and the volatility of international financial markets also requires Hong Kong to constantly guard against risks in order to maintain competitive advantage and consolidate its position as international financial center. Based on competitiveness theory, the paper has also made a theoretical and empirical analysis of the major factors which affect the Mainland's financial services trade competitiveness. Finally this paper put forth the suggestion of developing their mutual and interactive relationship of financial system, and foster competitive advantage factors actively in the Mainland's financial service trade to enhance China's financial services trade competitiveness.