Currency Cooperation Between The Mainland And Hong Kong With The Framework Of CEPA

The regional currency cooperation is a primary change of the international monetary system since the late part of the 20th century, which will be a trend continuing into the 21st century. Regional financial competition will take place in the financial market, with competition between nations, and regional financial groups becoming a strong competitor. Under this background, if we make efforts to realize the China internal currency merger step by step, it will increase our whole competitive power of the world economy in the 21st century. Taking into consideration the policy sensitivity of the Taiwan issue and the economical structure comparability of Macau to Hong Kong, the paper mainly discusses the currency cooperation between Mainland China and Hong Kong.It also mainly observes such problems as the significance, conditions, foundation, feasibility, process of the cooperation between Mainland and Hong Kong(emphatically from the economic cohesion for both sides),the rising economic positive correlations, and scale of mutual currency circulation. The paper approximately contains five chapters:The first chapter introduces the background of currency integration and Mainland-Hong Kong currency cooperation as well as the present academic research conducted domestically and abroad.The second chapter introduces the development process of the theory of Optimum Currency Areas (OCA), and the origin and development background of currency integration. From the successful practice of European currency integration, China can gain enlightenment of the characteristics and route about regional currency cooperation and integration.The third chapter makes an analysis on Mainland-H K currency cooperation feasibility from the economic foundation, cohesion, and positive correlations, based on the signing of CEPA and further advancement of China Mainland-H K economic and trade relationships. Thus, it expounds Mainland and Hong Kong not only being suitable to buildup optimal currency area, but also having feasibility on the theory and practice. Though the conditions may not completely meet the need in the short turn, ultimately...