Study On HK Dollar And RMB Integration Strategy

Economic globalization and the closer integration of the Finance have become the main trend of the current world's economic development. Under this trend, any country can't develop independently exceeding other countries effects. As well as any country's economy can't realize the coordinated operation of the whole economy without considering the background and circumstance of international economy. Therefore, we must consider the district monetary integration as 21 century of the world's finance major problem.In this paper, we start from the trend integration of China and Hong Kong situation, analyzing Hong Kong dollar and RMB integration, affirming their strategic meaning and economy meaning. Then we further analyze Hong Kong dollar and RMB is integration or not could be judged by the following basic conditions such as, economy connection, market integration, production factors,Finally, according to the experience of European monetary integration and combine with the actual China economy structure, this paper points out the effect of CEPA policy from (2003-2007)on Hong Kong dollar and RMB integration.