Author(s)

Rongjie Zhang ¹, Zhiyuan Sheng ¹, Runzhi Li ¹

Affiliation(s)

¹ Department of Economics and Trade, School of Business, University of Jinan, Jinan, Shandong, 250002, China

Corresponding Author

Rongjie Zhang

ABSTRACT

As Sino-US financial confrontation intensifies, Hong Kong China, as a crucial global international financial center, has become a key strategic platform in the financial competition between the two countries. This paper reviews the development of Hong Kong as an international financial center and provides an in-depth analysis of its role in RMB internationalization, capital market connectivity, and cooperation within the Greater Bay Area. Through mechanisms such as "Shanghai-Hong Kong Stock Connect," "Shenzhen-Hong Kong Stock Connect," and "Bond Connect," financial ties between Hong Kong China and the Chinese Mainland have deepened, consolidating its position as the largest offshore RMB center. With its highly internationalized financial system and unique "One Country, Two Systems" framework, Hong Kong China continues to maintain competitiveness within the global financial system. Despite challenges posed by the rise of financial centers in the Chinese Mainland, it continues to strengthen its role as an international financial hub by optimizing infrastructure and enhancing collaboration with the Chinese Mainland.

KEYWORDS

Sino-Us Financial Confrontation; International Financial Center; Greater Bay Area; Rmb Internationalization; Shanghai-Hong Kong Stock Connect; Shenzhen-Hong Kong Stock Connect; Bond Connect; Offshore RMB

CITE THIS PAPER

Rongjie Zhang, Zhiyuan Sheng, Runzhi Li, The Pearl of the Orient: A Strategic Hub in the U.S.-China Financial Confrontation. Financial Engineering and Risk Management (2024) Vol. 7: 35-41. DOI: http://dx.doi.org/10.23977/ferm.2024.070605.

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