On the “Past and Present” of Hong Kong’s Finance

Finance is vital to a country, and Hong Kong, as a special part of the large economy of China, has unique advantages and development history. And Hong Kong’s growth from a small fishing village to a financial centre has its inevitable factors: historical, geographical and policy advantages. After nearly a century of rapid development, Hong Kong has achieved many proud accomplishments in the following fields: economy, medicine, education, etc. In the process, the cooperation between Hong Kong and the mainland has become increasingly close, and the two sides of the Strait have become excellent “partners”. In recent years, due to the COVID-19 epidemic and the rise of China as a big economy, Hong Kong is facing an unavoidable dilemma. In view of this, the authors suggest that Hong Kong can develop financial technology, enhance financial security, implement green finance, and promote corporate innovation. At the same time, Hong Kong should also strengthen the relationship with the mainland. Generally speaking, under the current circumstances, Hong Kong will continue to exist as an important financial center of China, but Hong Kong should also actively face the challenges of the times and explore new developments directions in the future.

Financialization in South Africa

Financialization has become a popular concept across the social sciences, usually defined as the increasing role of financial motives, financial markets, financial actors, and financial institutions in the operation of the domestic and international economies. Financialization researchers highlight the detrimental consequences of an excessively large and powerful financial sector on economy and society. In South Africa, financialization has been shaped by its colonial and apartheid past, especially the strong links of South African corporations and banks to the international financial centre of London. Low growth and investment, an outcome of the finance-led accumulation regime, have also resulted in the continuity of extreme inequality and high levels of unemployment. In the Global South, financialization mainly affects emerging economies since they possess relatively developed financial markets in comparison to poorer countries. South Africa is the only African economy for which there is a substantial financialization literature. In comparison to other emerging economies, South Africa is relatively strongly financialized as stock market capitalization is extremely high, making Johannesburg one of the top financial centres in the Global South. Furthermore, financial inflows into the country are comparatively large, JSE-listed companies are well integrated into global value chains and household debt is high.

The Big Bang

This chapter examines the 1986 Big Bang liberalization of the London Stock Exchange (LSE), which was crucial in transforming the City of London into a truly global financial centre. This policy was the result of a winding institutional process that began in 1979 when the RPC initiated a case against the LSE for non-competitive practices. While Thatcher initially refused to exempt the LSE from this case, things changed following the government’s implementation of its monetarist experiment: MTFS. MTFS was a strategy to discipline the British economy in a depoliticized manner, by locking the government into years of financial stringency. In order for this strategy to be successful, the government had to meet certain monetary targets, which would justify the painful measures. Yet this plan went awry, plunging the economy into a deep recession while the government failed to hit its monetary targets. To prevent the complete presentational collapse of MTFS, the state began to make massive sales of government debt on the LSE as a way to meet the monetary targets. This in turn made it crucially important that the normal functioning of the LSE was not disrupted by a drawn-out court case. The Thatcher government finally decided to exempt the LSE from this investigation in 1983, which began the countdown to the 1986 Big Bang liberalization. The decision that led to the Big Bang was thus, to a significant extent, a desperate attempt to protect MTFS, which had sought to restructure the British economy in line with global competitive pressures.

Was adam smith an economic geographer?

Economic geographers typically associate Adam Smith with the pin factory, the division of labour, and the ‘invisible hand’ of the market. We show that a closer reading of The Wealth of Nations reveals a much richer and broader range of ideas, which we illustrate by focusing on six themes: methodology, the role of physical geography and land in development, urban scale, institutions, commercial centres, and financial geography. On commercial centres, for example, Smith offers a vivid elaboration of what causes a ‘home bias’ in international trade. Similarly, in a largely neglected part of the book, Smith offers a thorough set of reflections as to what turned Amsterdam into the leading financial centre of Europe during the seventeenth century and eighteenth centuries. Overall, we argue that in all these themes and across them, Smith offers insights valuable to contemporary economic geography, making the Wealth of Nations worthy a place in an anthology of the discipline.

Special Features Of International Financial Centres And Its Establishment In Uzbekistan

The most important tasks in the field of economic development are attracting foreign investments into the economy of our country, creating favourable conditions for them, providing legal protection and further improving the investment climate. The article analyzes the basic concepts of the international financial centre and its brief history, the views of several scholars from different countries on international financial centres and their types. Prospects for the establishment of international financial centres in Uzbekistan were also studied. This was demonstrated as a result of the analysis of the legal, financial and other possibilities of establishing an international financial centre based on common law in Uzbekistan.

Ecologies of green finance: Green sukuk and development of green Islamic finance in Malaysia

In this paper, we analyse the recent development of green sukuk (often referred to as an Islamic green bond) since its issuance in Malaysia in 2017, and critically evaluate whether it addresses some of the existing contradictions of green finance. Using a financial ecologies approach, we examine Malaysia's configuration of green sukuk as drawing from the existing international green bond regime, partnership with the World Bank, and Malaysia's own experience and expertise in Islamic finance, with the objective of building Kuala Lumpur's competitiveness as a global Islamic financial centre. Through documents analysis and interviews with key market actors in Kuala Lumpur and other financial centres, our findings point to the emergent international adoption of green sukuk. While this achieves Malaysia's state-building objectives, specifically through expanding Malaysia's sukuk market and advancing its status as a frontier of Islamic financial innovations, the potential for improving the current green bond regime has been more doubtful. A key limitation is the incorporation of existing Green Bond Principles, which enables not only green sukuk's international acceptance but also renders it susceptible to greenwashing. By examining the intersection of different ecologies of green and Islamic finance, we reveal the contradictions and limitations of green sukuk in contributing to Malaysian state-building and climate action.