Hong Kong has proved one of the most exciting and dynamic economies in the last half century. The rags-to-riches story of its' manufacturing has inspired historians, economists and business people. Now, however, Hong Kong is better known as one of the world's premier international financial centres. This book uncovers previously inaccessible data on the origins of Hong Kong's post war rise to global prominence in the international financial system by exploring the expansion of the gold market, stock market, banking system, foreign exchange market, and insurance in the years 1945-1965. This book addresses key questions such as, how close relationships with China developed after the war? What have been the benefits and costs of the laissez faire policy for the Hong Kong financial system? To what extent did the international outlook of the financial sector disadvantage local industry? Christine R Schenk exposes deep conflicts between the British and Hong Kong governments, the resolution of which had a profound impact on the development of the country's financial system.
Moreover, the book argues that Hong Kong's unique position in the 1950s and 1960s in the international monetary system gave it advantages that promoted it to a global importance it would not recapture until the 1980s. Based on previously unpublished archival records, this book makes a significant contribution to our understanding of the development of Hong Kong, the impact of financial regulation and, more broadly, the role of financial centres in the international economy in the post war period.