HONG KONG

Hong Kong and there History, Government, and Economics, and Their Influence on Global and Local Issues

Hong Kong and there History, Government, and Economics, and Their Influence on Global and Local Issues

Hong Kong

Hong Kong is a unique directorial constituency of the People's Republic of China (PRC), guided by the “one country, two systems” principle: unlike the communist PRC, Hong Kong is a free trade capitalist economy and one of the world's finance capitals. The economy is largely service-driven, with unfavorable taxation, and the culture heavily influenced by the more than the 150-year period during which the region was a British colony. In all matters except the military and foreign policy, Hong Kong is granted near-total autonomy (Caldwell & Caldwell, 2006).

Power Full Financial System

Hong Kong is arguably the pioneer of financial management reform. Reforms in Hong Kong began with the amalgamation of line items, inter-departmental charging, abolition of 'block vote' arrangements for internal 'supplier' departments of communal services, and the gradual devolution of financial authorities from the central budget agency (the Finance Branch of Government Secretariat) to policy bureaus and departments.

In the 1990s output-budgeting presentation was adopted in the form of Controlling Officer's Reports containing performance indicators and results, baseline budgeting was introduced, and self-financing and self-accounting 'trading funds' were established. At the turn of the century, to cope with fiscal stringency following economic recession, an Enhanced Productivity Programme, efficiency savings, 'Save & Investment' accounts, and one-line budgets in the form of 'operating expenditure envelopes' were consecutively implemented (Chamberlain & Jonathan, 2010).

Financial market changes over the past two years will increase its likelihood. This involves several inter-related issues, including currency, banking system, stock market, management and law environment. Over the past fifty years, because of free, commercial port of Hong Kong's position to benefit hugely. From the rapid manufacturing center, the development of large international financial institutions, many Chinese enterprises status listed in Hong Kong has improved.

Whether the international financial services industry continues to decline, it is difficult to speculate, however; the recession is still possible, because in the past two decades of experience, only when the growth of financial services beyond trade to grow, and grow to exceed the overall growth of trade when the recession was likely to reverse the trend.

In general, decline of the financial services industry is seen as detrimental to Hong Kong, mainland China or Hong Kong will be more dependent on business. However, the other hand, no matter how the international economic situation changes, China may have a deteriorating external environment, to reduce the trade surplus, the outflow of hot money, and the security holders of foreign debt and other issues. If you want to Shanghai prior to 2020 such as New York and London's international financial center and capital control liberalization and other reforms are essential, and this liberalization is very likely due to the above factors and China's own suspension.

In fact, Hong Kong and the mainland between the financial gaps not only enable Hong Kong to retain business, but also continue ...