Hong Kong vs Shanghai?
Posted 24 July 2012 - 07:28 PM
Will HK's economic performance and competitive edge be overtaken by the Beijing-supported Shanghai or will HK's economic and legal system prevail? Shanghai is poised to become an international financial centre by 2020, with full support from Beijing. However, HK is already an international financial centre. Will HK be "taken out of the game soon"?
Posted 24 July 2012 - 09:25 PM
Who knows what holds for politics and economics in the future?
Posted 26 July 2012 - 12:27 AM
Posted 18 October 2012 - 12:06 AM
Posted 01 November 2012 - 10:15 PM
Posted 01 November 2012 - 10:19 PM
that many be true in the past. but the current hong kong financial sector is booming because of the capital outflows coming in from the mainland
Posted 03 November 2012 - 04:52 PM
Posted 06 November 2012 - 06:28 AM
Edited by OldOldBoy, 06 November 2012 - 06:29 AM.
Posted 24 November 2012 - 10:34 PM
Even if the rule of law prevails in China, the best I can see the Shanghai becoming a financial center would be what Silicon Valley is to old money New York. Shanghai will always be new money compared to Hong Kong because we're only seeing 2nd generation rich folks coming out of China right now while Hong Kong has been old money for at least 5 generations so Shanghai will always have a 3 generation lag behind Hong Kong. The knowledge, experience and sophistication in creating and nurturing a financial centre is what will give Hong Kong a leg up over Shanghai.
However, policy makers can back bench Hong Kong by making it less business friendly, particularly with the current Chief Exec Leung Chun Ying, and make Shanghai look more favourable, thereby paralyzing Hong Kong while Shanghai grows. The thing is, knowledge, experience and sophistication is mobile and can be transplanted in and out of anywhere. Hong Kong will continue to outpace Shanghai.
Posted 16 December 2012 - 02:37 AM
what will make shanghai the next financial hub? the fact that mainland reduces its dependence on the hk financial institutions, eliminating hk as the middleman.
but china does not work to detriment hk. hk is a part of china, they arent seperate. thats like saying china will screw over shanghai just to make beijing look more attractive to invest. like wtf?
Posted 27 December 2012 - 01:03 AM
Posted 27 December 2012 - 05:45 AM
Are you sure about this? Let's say if someone from Tokyo who wants to invest in American equities, he/she has to do in HK? Or if someone from Brussel who wants to invest in yen denominated bonds, he/she has to do in HK?
Edited by MrCritique, 27 December 2012 - 05:46 AM.
Posted 28 December 2012 - 02:31 AM
Shanghai may be the mainland's fastest growing economic powerhouse but it still has a long way to go to become an 'international finance centre'
Hong Kong has the long established tradition of common law practices implemented by the British and is considered 'safer' because of the legal protections that are in place for both businesses and prospective clients. There is a clear definition of what is legal and what isn't compared to Shanghai. Until Shanghai's legal system (well mainland in general unless there are certain concessions granted) matures and develops it cannot be held in the same regard as Hong Kong because investors and corporations will not want to invest in a city that offers no legal protections for its companies. A lack of clear and definitive legal protections for international corporations and businesses will prevent Shanghai to excel in this regard.
Shanghai is an experiemental ground for the central government to observe what policies they perceive to be favourable and what they deem no favourable. While Hong Kong has relatively few restrictions in banking and capital accumulation, Shanghai has protective measures in banking and capital market which don't allow it to operate at maximum potential.
But as some people have said before it is entirely up to the decision of the CCP. I think in the past decades Shanghai has been heavily promoted as an economic centre simply because the land mass is bigger and there are more opportunities for development (physically in terms of buildings and financial services, Hong Kong is tiny in land mass and there may be trouble getting more buildings constructed). Even though Hong Kong is by definition a SAR that enjoys a wide range of political, civil and economic autonomy this can all change and the central government has the power to alter that economic power.
I think for the time being Hong Kong will remain as an 'international financial centre' simply because of the well established name it has made for itself, becoming instantly recognisable and has a very long tradition of economic success and longevity. Shanghai is relatively new and there is no doubt that it will develop in the future as it is now (growth rates are astonishing) but until the rule of law (or some other chinese equivalent) becomes common place most companies and investors are cautious when it comes to dealing business in Shanghai.
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