Who will become a global financial center, Shanghai or Hong Kong?. Cheung Yan-leung Dean & Professor (Chair) of Finance School of Business Hong Kong Baptist University. Agenda. The definition of Global financial centre Global Financial Centre Index Background & advantage of Shanghai
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Dean & Professor (Chair) of Finance School of Business Hong Kong Baptist University
“have sufficient critical mass of financial services institutions to dispense with intermediaries and to connect international, national and regional financial services participants directly”
(City of London)
From the GFCI report, Hong Kong’s ranking is stable. The ranking exhibits an downward trend in shanghai.
(1) : Source :Shanghai Stock Exchange Fact Book 2007
Shanghai announced in April 1990 its plan to develop the Pudong New Area, and its ambition to re-emerge as a major international financial centre by 2010,
Recently, State Council of China government declared to support for Shanghai’s plan to become an international financial center by 2020
From the GFCI 5 report, Hong Kong has performed well in all of the sub-Indices by Area of competitiveness. Include:
Source: GFCI 5
The Centres Where New Offices will be Opened
The GFCI 5 report shows that the investors prefer Shanghai for their future investment rather than Hong Kong
Source: GFCI 5
Centers Likely to Become More Significant
The report reflects that the investor recognizes the role of Shanghai will be more significant in the foreseeable future.
Source: GFCI 5
Bond Market Development
Insurance Industry Development
“Hong Kong remains a strong financial centre and is in 3rd or 4th place in all industry sector sub-indices, except Insurance, and in all areas of competitiveness.”
Source: Comment from GFCI 5 report
Improve the quality of the listing company
Hong Kong should focus on the improvement of transparency for listing companies.
Frequency of financial reports remains limited to annual and interims, whole reporting deadlines is well below international best practice.
Diversify our industrial structure
Hong Kong should diversify the industry, for example: Biological technology, education, tourism, logistics, as well as IT and other high-tech industries
Now, Hong Kong focuses mainly on the tertiary industries, esp. financial industry
Regulation of the financial institutions
Strengthen the co-operation to Guangdong Region
Before full convertibility of the RMB
After full convertibility of the RMB
After full convertibility of the RMB (cont’)