ABSTRACT
The latest Country Report on the People’s Republic of China — Special Administrative Region (SAR) published by the International Monetary Fund (IMF, 2002b, 3) describes the growing ties between Hong Kong and mainland China since Hong Kong’s return to China’s sovereignty this way:
Integration between the two economies has deepened, notwithstanding the Asian crisis: Mainland-related entrepot trade has continued to increase; a large share of China’s foreign currency financing is raised in the Hong Kong SAR financial market; a growing range of economic activities are integrating across the border; and Hong Kong SAR business has become increasingly centered around China-related activities.
