| Abstract | After 1997 the Hong Kong Special Administrative Region will enjoy a high degree of autonomy under the principle of "one country, two currencies, two monetary systems and two monetary authorities". Hong Kong will retain its currency link to the US dollar and mainland finanial institutions will be treated like other international banks in Hong Kong. Meanwhile, China will continue to reform its financial system, placing the large banks on a more commercial basis, improving the effectiveness of monetary policy and moving towards current account convertibility of the Renminbi. As China develops, Hong Kong will act as its international financial centre. |
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