Shanghai has been urged to build itself into a hub serving the rising outbound investment needs of Chinese firms, potentially increasing rivalry with Hong Kong as both cities race to augment their status as financial centres.<\/p>\n
The suggestion by Liu Xiaochun, vice-president of the Shanghai Finance Institute and a senior banker with three decades of experience, was made in mid-June at a closed-door meeting hosted by China Finance 40, a Beijing think tank comprising many top Chinese financial regulators, bankers and academics.<\/p>\n
\u201cJust as American multinationals expanded globally with New York as their financial anchor, China\u2019s outbound firms face a phenomenon shaped by unique international circumstances, and cannot rely on financial centres in other countries,\u201d said Liu, former head of Agricultural Bank of China\u2019s Hong Kong branch and former president of Hangzhou-headquartered China Zheshang Bank, according to a transcript of his speech published last week.<\/p>\n
\u201cChina has Hong Kong, a mature international financial centre with the flexibility to respond to market changes, but that is not enough to fully meet the special needs of Chinese companies\u2019 outbound expansion. In this regard, Shanghai needs to play a role.\u201d<\/p>\n
Hong Kong, which has the Greater Bay Area<\/a> at its doorstep, a mature common law system and free capital flows, has long prided itself on being a superconnector that assists Chinese companies in expanding internationally. This includes expansion to both Western countries and those taking part in the Beijing-led Belt and Road Initiative<\/a>.<\/p>\n \u201cTo boost its standing as an international financial centre, Shanghai must demonstrate that role through support for outbound Chinese firms,\u201d Liu said.<\/p>\n Behind Liu\u2019s proposals is Shanghai\u2019s ambition to make itself a global business hub. The city has the Yangtze River Delta at its back, more regional headquarters of multinational companies than any other mainland city and policy support from the central government.<\/p>\n","protected":false},"excerpt":{"rendered":"Shanghai has been urged to build itself into a hub serving the rising outbound investment needs of Chinese…\n","protected":false},"author":3,"featured_media":902650,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[12],"tags":[365525,9710,128462,64,281759,255773,244663,79,9371,15325,8464,365523,365524,22706,405,6043,67,132,68,220853],"class_list":["post-902649","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-agricultural-bank-of-china","tag-beijing","tag-belt-and-road-initiative","tag-business","tag-china-finance","tag-china-zheshang-bank","tag-cross-border-interbank-payment-system","tag-economy","tag-greater-bay-area","tag-hangzhou","tag-hong-kong","tag-international-organisation-for-mediation","tag-liu-xiaochun","tag-ministry-of-commerce","tag-new-york","tag-shanghai","tag-united-states","tag-unitedstates","tag-us","tag-yangtze-river-delta"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116838063426003688","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/902649","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=902649"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/902649\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/902650"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=902649"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=902649"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=902649"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}