Both the Hong Kong and Beijing governments intend to secure the functions of social welfare in enhancing the attractiveness of their economies to private capital by strengthening social stability and reducing the negative effects of social welfare on the private market. This article examines the difficulties they face in carrying out these two tasks at the same time with the focus on the health finance reforms in Hong Kong and urban China. Three questions are discussed: What are the causes of these reforms? What are their key features? What are the difficulties faced by the Hong Kong and Beijing governments in launching them?
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