The development of the world’s first real region is moving along at a pace in Hong Kong and the 12 other cities of China, including Macao. It is about 70 million people and it is easy to see how transportation and other similar services can be organised more efficiently as a region. The question of how to discipline development of discreet clusters to different cities may end up being handled practically by providing key resources in one city only.
This region is unusual in that it is transnational in the sense that it has three currencies and customs in existence. So how the UK may survive outside the EU is considered as relevant in this Bloomberg article below.
One hopes that Hammond has maintained goodwill in Europe to enable London not be abandoned by Europe. If the UK is penalised then we have to ignore this article. But the reality is the world is going towards consolidation and the UK as a separate currency is really only for the UK. Both the UK and HK exist, in part, because they are centres for global currencies.
I would guess that the currency of HK is increasingly going to be the Rmb, whereas the currency of the UK might be sterling. For both their currencies for trading will be the global major currencies. The UK might become marginalised by the EU but it will still be a significant world currency. But it can only grow by joining with China in the new BRI financial centres. For HK it can grow by providing transfers between Asian nations and by developing Hong Kong as a hub for Asian transactions. We shall see if the Beijing authorities decide to make HK the main trading centre for BRI, in which case the RMB will be the dominant currency. If BRI bonds are increasingly used, and Chinese domestic bonds, and HK is the centre of those trades then HK will have a big future.
But HK people will have to become comfortable with Beijing if they want that support from Beijing. Similarly London may have to be more than a USA outpost if it wants to have European support.
Both the UK and HK have to look anew to their global roles. And corporations , and governments, are going to have to work at understanding the future reserve currencies of the world, as they will begin to influence the currencies of trade and reserves, and that means more cross currency risk management.
A global currency looks increasingly attractive, but it is 20 years or more away if ever,