A Research On Financial Corporation And Integration Among Guangdong Province, Hongkong And Macao

With the economic and trading relationships becoming more and more intimate betweenGuangdong Province, Hongkong and Macao, so is their financial cooperation. For the threeregions’ financial integration plays a critical role in their economic development and theeconomic integration of the motherland.This thesis begins with qualitative analyses of the three regions’ financial cooperationsituation base on the cooperation of financial institutions and financial markets. Then empiricaltechniques are used to present quantitative analyses on the degree of financial integration amongthe three regions. I also analysis the barrier on the financial integration combine the results ofempirical analysis, then I can make a preliminary idea on the future of financial integrationmodel. Finally some policy recommendations are included in the last part of the thesis. The mainfindings are as follows:1.The signing of CEPA agreement has lifted constrains regarding mutual establishment ofthe financial institution, business interaction and talent exchange. Currently, cooperation of thethree regions in the financial institutions and financial markets areas have made many newprogress.2.The degree of financial integration between the three regions has increased after theimplementation of CEPA, but the degree is lower than the degree of financial integration inother countries in the world. Financial integration between Guangdong Province, Hongkong andMacao is still in its infancy.