This course aims to provide students with a systematic understanding of the post-war development of the Hong Kong economy and the economic relationship between Hong Kong and the mainland China, especially after China adopted its open-door policy and economic reform since 1978. Macroeconomic environment and policy issues of Hong Kong will be examined.  The prospect and strategy of closer economic co-operation between Hong Kong and the mainland China as well as the role of Hong Kong in China's economic development will be examined. It is expected that after attending this course,  students will understand more Hong Kong’s macroeconomic environment and its economic relationship with the mainland China upon which informed decision could be made in business and other areas.