... underdeveloped for various reasons, which could be categorized into supply and demand constraints. Supply constraints Supply of bonds from government and corporations, had long been limited. Hong Kong Government's fiscal policy had been conservative and had accumulated huge surpluses prior to 1997. There was no need for the government to issue government debts securities for deficit financing. This, in addition to ... were still illiquid. Also, Exchange Fund papers, which were intended as a substitute for treasury bonds, form Hong Kong's monetary base and are monetary aggregates in nature...

• Word Count: 1396
• Approx Pages: 6
• Grade Level: Undergraduate

... promoted. According to the definition of the website of Investopedia, "an economic arrangement between different regions is marked by the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies. The aim of economic integration is to reduce costs for both consumers and producers, as well as to increase trade between the countries taking part in the agreement ... , the cooperation between the markets of Hong Kong and Shanghai could be strengthened; the position of international financial centre of two cities could be consolidated as well. It is a rec...

• Word Count: 1927
• Approx Pages: 8
• Grade Level: Undergraduate