The Renminbi's Changing Status and the Chinese & Hong Kong Financial Systems

This book explores how China’s gradual capital account liberalization and the growing role of Hong Kong as a leading offshore centre for RMB will affect the international monetary system, the balance of international trade, the shape of the world’s banking system and securities markets, and the future monetary system of Hong Kong. This collection of papers is an essential resource for anyone seeking to understand the actual and potential ramifications of current Chinese monetary policy.

Includes discussions on various issues arising from the changing status of the Chinese currency and its effects on:

• International trade
• Banking
• Securities market
• Hong Kong’s monetary system

TABLE OF CONTENTS

Part One: International Trade

• Chapter 1: Possible US Responses to China’s Currency  Policies: Evaluating the Options
• Chapter 2: Is It a Good Idea to Challenge China’s Currency Issue in the WTO?
• Chapter 3: China’s Currency and IMF Issues
• Chapter 4: East Asian Supply Chains and Relative Prices: A Survey of the Evidence

Part Two: The Regulation of Banking and the Securities Markets

• Chapter 5: Possible Problems on FDI and ODI Regulation Arising from the Liberalization of Capital Account in China and Their Implications
• Chapter 6: Taiwan’s Securities Markets in the Shadow of Foreign Exchange Policies: Lessons from the Bubble in the 1990s

Part Three: Should Hong Kong Adopt the Renminbi as Legal Currency?

• Chapter 7: The Introduction of the Euro: Reasons and Effects
• Chapter 8: Why Hong Kong can Adopt the Renminbi as Legal Tender