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Implications for the Hong Kong economy
58.
to
The
in
of
sustained efforts by the Chinese government
revamp and strengthen the financial sector will help to improve the efficiency of financial intermediation
China, which in turn will improve the allocation
resources in China's economy. Given the increasingly close economic links between Hong Kong and China, any improvement
in the functional structure of China's economy will no
doubt be of benefit to the Hong Kong economy.
59.
The furthering of reforms in the financial sector
is but a part of the Chinese government's strategy to
transform China as a previously centrally planned economy
into a more market-oriented economy. These reforms will be
able to enhance the confidence of foreign investors in
China's economy and help narrow the gap between the
economic systems in Hong Kong and in its northern
hinterland.
60.
In the process of revamping its financial system to catch up with international standards, there will be
heavy demand from China for professional advice and other
supporting services to be rendered from Hong Kong. Along
with this there will be a substantially greater demand for
business professionals based in Hong Kong.
61.
China's
These reforms will also facilitate the growth of
foreign trade and investment, which in turn will be
beneficial to Hong Kong, particularly in its continuing
development as а major entrepôt and business
centre for China.
services
62.
As China gradually opens up its financial sector, Hong Kong's financial institutions will be able to step up
their linkages with corresponding institutions in China.
This will help strengthen, rather than undermine, the role
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