Hong Kong's Economy

Paper Summary:

This paper examines how Hong Kong, once a vibrant manufacturing center of Asia, is fast becoming the financial hub of the continent. It shows how with its immense human resource in the financial sector and its expertise in handling export services, it is fast becoming the main business gateway of China. It analyzes the various economic reasons that have redefined Hong Kong's role from being a largely production centric economy towards a service oriented economy.

Outline
Thesis
Introduction
Economic Growth
Hong Kong - China Industrial Relocation
Effects of Investments in China
Manufacturing Hub (A Declining Trend)
Reasons for the Shift
Hong Kong (Growing Entrepot Trade)
Tax Policies
Offshore Income (Tax Exemption)
Low Tax (Capital Income)
History of Hong Kong Currency
Aftermath of Reversion to China
China's Entry into WTO (Implications for Hong Kong)
The Growing Financial Market
Conclusion

From the Paper:

"In December 2000 the monetary authority of Hong Kong introduced the US dollar settlement system. It is widely perceived that the introduction the US dollar payment system within Hong Kong was initiated with a view to further boosting Hong Kong's potential as a financial service sector. The new US dollar payment system is in tune with Hong Kong's export oriented economy. Joseph Yam, chief secretary of Hong Kong's monetary Authority said the new system, "is part of the Hong Kong Monetary Authority's continuing program of building financial infrastructure under its strategy for developing Hong Kong as the financial hub of Asia,". He further adds, "Because the exchange rate link suits an externally oriented, Entrepot economy, it will continue to serve Hong Kong well in its expanding role as a regional and international hub, as China enters the WTO.""

More papers on Hong Kong's Economy:

• Essay # 39117 : "The Development of Hong Kong Economy"
• Essay # 138240 : "The Transformations of the Hong Kong Economy"
• Essay # 84840 : "Hong Kong"
• Comparison Essay # 26389 : "Hong Kong: British and Chinese Governance Compared"

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