Shanghai as a Global Financial Centre
Hi Everyone,
I've been very quiet since I set this group up as I have been immersed in a project which has now come to an end. So I thought I'd get a little discussion going and see where it leads! I'm also writing a blog on this issue which I'll do over the weekend or sooner if I can so please read and comment!
My basic question is this-Can Shanghai establish itself as a global financial centre by 2020 and what effect will this have on business environment in China. China has already made big steps towards the internationalization of the RMB and combined this by beginning to attract foreign companies to list on the Shanghai exchange. The increasing development of China's financial markets and also the proposed creation of a free trade zone around Shanghai all point to a fundamental move towards a genuine opening up for Shanghai. However there would seem to be a looming clash between the very forward thinking Shanghai Municipal Government, led by Dr Fang Xinghai and SAFE in the guise of Yi Gang.
China then, it appears to me is faced with a fundamental crossroad in it's global development, Can genuine free markets exist within a communist state and are we looking at a new definition of both capitalism and communism and which will be victorious in this clash of ideologies.
It is ironic that the increased regulation being imposed in the US and Europe has led to many fund managers actually arguing that China has a more familiar model of a free market-post credit crunch, than can be found in the west and are starting to overweight in Chinese equities.
So that brings me back to my original question-can Shanghai compete as a Global Financial Centre. My view, for what it's worth, is yes! However I don't think this will happen anytime soon. In the short term I think Hong Kong will be the main beneficiary. I think the early signs look positive but much more need's to be done to increase general business freedom within the country-thoughts?!
I've been very quiet since I set this group up as I have been immersed in a project which has now come to an end. So I thought I'd get a little discussion going and see where it leads! I'm also writing a blog on this issue which I'll do over the weekend or sooner if I can so please read and comment!
My basic question is this-Can Shanghai establish itself as a global financial centre by 2020 and what effect will this have on business environment in China. China has already made big steps towards the internationalization of the RMB and combined this by beginning to attract foreign companies to list on the Shanghai exchange. The increasing development of China's financial markets and also the proposed creation of a free trade zone around Shanghai all point to a fundamental move towards a genuine opening up for Shanghai. However there would seem to be a looming clash between the very forward thinking Shanghai Municipal Government, led by Dr Fang Xinghai and SAFE in the guise of Yi Gang.
China then, it appears to me is faced with a fundamental crossroad in it's global development, Can genuine free markets exist within a communist state and are we looking at a new definition of both capitalism and communism and which will be victorious in this clash of ideologies.
It is ironic that the increased regulation being imposed in the US and Europe has led to many fund managers actually arguing that China has a more familiar model of a free market-post credit crunch, than can be found in the west and are starting to overweight in Chinese equities.
So that brings me back to my original question-can Shanghai compete as a Global Financial Centre. My view, for what it's worth, is yes! However I don't think this will happen anytime soon. In the short term I think Hong Kong will be the main beneficiary. I think the early signs look positive but much more need's to be done to increase general business freedom within the country-thoughts?!
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Permalink Reply by ZHILIANG LIU on -
Experienced past 3 decades development, i dont think people care about the issue of wether china is a communism country that much. In the real life, the ideology of the society is much more capitalism already. People care about economics much more than politics. Care about cooperation with western much more than the difference, this change bring great opportinuties to China.
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