The Next Wave of Guangdong's Cooperation with HK

The dividends from the first wave of Guangdong's cooperation with Hong Kong are starting to slow and China is changing the nature of its economy in fundamental ways. The development of a financial services regional platform between Guangdong and Hong Kong is a key step toward the country's transformation to a consumption-led economy.

Hong Kong's economy has always been built around flows: through its ports, airport, stock market and banking sectors. Hong Kong has been the fulcrum of China's economic engagement with the global economy because it has been better connected to the economically vibrant portions of the mainland than the rest of the world and better connected to the rest of the world than the mainland.