The Influence of Hong Kong Banking Law on Banking Reform in the PRC

After the hand over of Hong Kong by the United Kingdom to the People\u27s Republic of China ( PRC ), some commentators predicted that China would interfere with Hong Kong\u27s economy and legal system despite the Basic Law\u27s protections. This Article argues that in the area of financial supervision, particularly bank supervision, the Hong Kong Special Administrative Region has significantly influenced banking reform in the PRC. The PRC\u27s implementation and development of bank supervisory standards that approach compliance with international financial standards has been significantly influenced by the Hong Kong Monetary Authority ( HKMA ), Hong Kong\u27s central bank, through both informal and formal contacts between HKMA officials and PRC bank supervisory officials. The Article briefly analyzes the PRC banking system, provides a short history of banking reform in the PRC, describes the influence of the HKMA and the Hong Kong financial sector generally on the PRC banking reform efforts, and finally examines the prospects of continuing Hong Kong influences on PRC banking reform