The main reasons for the rapid development of Hong Kong's financial industry are: 1, Hong Kong has a good social and financial environment. Hong Kong has a relatively stable political, economic and social environment and a sound legal system, which can protect the legitimate rights and interests of market participants. Hong Kong is also a free port, with free entry and exit of funds and free exchange of Hong Kong dollars. The tax system is simple and the tax rate is relatively low. It has developed financial and insurance industries. At the same time, as financial management institutions, the Committee on Banking Supervision and the Banking Association have played an active role in maintaining the order of Hong Kong's financial market. 2. Hong Kong is deeply influenced by the external environment; We can learn from it; 1 Since the 1970s, due to the import of modern technology, Hong Kong's financial industry has been equipped with advanced technology and equipment from the beginning, which has won time for global trade and improved efficiency. 2. Due to the influence of western economic crisis and energy crisis, Hong Kong has become the foothold of petrodollars and a haven for overseas Chinese in Southeast Asia. 3. Because of its geographical position, Hong Kong has become an important link between London financial market and New York financial market, which has further promoted the development and internationalization of Hong Kong financial market. 3. Effective financial measures in Hong Kong; In the 1980s, Hong Kong financial authorities continued to promote financial liberalization, and the gold futures market was opened at 1980. 1982 approved the establishment of a financial futures market; 1986, the bank regulations were revised again, and some restrictive clauses were cancelled; These measures have played a huge positive role in prospering the financial industry. At present, Hong Kong has become one of the important international financial markets. As a part of the foreign exchange market, it is also very developed. Hong Kong's foreign exchange market is quite special, with its own characteristics in terms of market operation mechanism, market structure and transaction currency. 1. The trading currency of the foreign exchange market in Hong Kong was originally the pound area. 1935 Hong Kong dollars is linked to the British pound, and the fixed exchange rate is 1 GBP 16 USD. Until 1972, the exchange rate of the British pound floated freely, and the Hong Kong dollar basically floated with the British pound. Foreign exchange transactions were limited to the exchange between the Hong Kong dollar and the British pound. After the pound floated, the Hong Kong dollar was pegged to the US dollar, and the US dollar replaced the pound. The foreign exchange market has become an exchange business between Hong Kong dollars and US dollars. 1973 after the abolition of foreign exchange control in hong kong, 1974 hong kong dollars floated freely away from the us dollar, and the currency transactions with other countries in the world increased, thus entering the international stage. At present, foreign currency transactions in Hong Kong are mainly US dollars, German marks, Japanese yen, British pounds and Swiss francs. Among them, the transaction against the US dollar has always been the first, followed by the transaction between the Hong Kong dollar and the mark. 2. Types of foreign exchange market Hong Kong's foreign exchange market is an invisible foreign exchange market, with no specific trading place or specific form. Only commercial banks, non-bank foreign exchange dealers and foreign exchange brokers conduct transactions through communication tools. 3. The three-tier system of financial management in Hong Kong is the main feature of its financial institutions. 1In July 1983, Hong Kong formally implemented a new management system, which divided financial institutions into three levels. The first level is a licensed commercial bank with a minimum paid-in capital of HK$ 1 100 million. It can accept deposits of any kind and any term. It is a financial institution with a large amount of deposits. 1. Business includes all kinds of deposits, mortgage loans, construction loans, credit overdrafts, import and export bills, foreign exchange trading, securities investment, trust and insurance agency. The second level is a licensed financial company with a minimum paid-in capital of HK$ 75 million, and can accept time deposits of over HK$ 500,000. Its business is wholesale, and its main business includes underwriting securities, financial services, group loans and negotiable deposits. The third level is a registered financial company with a minimum paid-in capital of HK$ 6,543,800+million. You can't set up a company outside Hong Kong. Only HK$ 50,000 and time deposits of more than three years can be accepted. Its business is retail. It mainly includes all kinds of mortgage loans, stocks, bonds, foreign exchange, gold, negotiable certificates of deposit, insurance agents, credit services and leasing services, consumer credit, etc. At that time, there were 15 1 licensed banks and 3 15 finance companies in Hong Kong. Among the licensed banks, foreign banks 1 16, Chinese banks 15 and 20 Hong Kong-funded banks. Among foreign exchange banks, the United States, Japan, Britain, France and Germany are the most, and foreign-funded banking institutions are second only to London and new york. Among the financial companies, there are 292 licensed companies and 23 registered financial companies, almost all of which are made up of foreign capital. Only a few Chinese and Hong Kong investors conduct foreign exchange transactions in Hong Kong, which mainly belong to three categories; 1. Spot foreign exchange transactions The operators of spot foreign exchange transactions in Hong Kong are banks, powerful financial companies and overseas international banks. Traditionally, it is usually done through foreign exchange dealers. 2. Forward foreign exchange transactions Forward foreign exchange transactions actually started after the depreciation of 1967. 3. Arbitrage is very active in the foreign exchange market in Hong Kong. Later, due to the development of communication tools, the exchange rate differences in different foreign exchange markets are fleeting, and the opportunities for profit are getting less and less. Therefore, although this kind of transaction still exists in Hong Kong, it has been greatly reduced. Instead, swaps, foreign exchange options and foreign exchange speculation have risen and expanded. The turnover of Hong Kong's foreign exchange market is second only to Tokyo in Asia. Hong Kong's major overseas trading partners are Tokyo and Singapore's foreign exchange markets.