Hong Kong and Shanghai: current and/or future international financial centres?
| Date | 05 October 2015 |
| DOI | https://doi.org/10.1108/JCEFTS-07-2015-0019 |
| Published date | 05 October 2015 |
| Pages | 183-193 |
| Author | John Adams,Andrew YC Wong |
| Subject Matter | Economics,International economics |
Hong Kong and Shanghai:
current and/or future
international nancial centres?
John Adams
Department of Economics, British University in Egypt, Cairo, Egypt, and
Andrew YC Wong
Compliance Department, Deutsche Bank, Hong Kong
Abstract
Purpose – This paper publishes summary results for the rst time of a major survey of senior nancial
practitioners undertaken in Hong Kong and Shanghai in 2005, and compares these with the Global
Financial Centre Index rst created in 2007 to determine the extent to which both are consistent.
Design/methodology/approach – The research is based on a detailed survey and utilizes
principal-components analysis to determine the primary factors relevant to the development of both
cities as international nancial centres (IFCs) and those which the respondents consider will be relevant
in the future.
Findings – The paper demonstrates that the key “success factors” for both cities in 2005 remain very
important in the global nancial centres index (GFCI) analysis ten years later but not necessarily by the
same ranking. We also found that a number of the “primary” factors change when respondents are
asked to consider future success factors.
Research limitations/implications – The survey was conducted ten years ago; however, the
results continue to have signicant reliability and validity - especially when compared with the results
of the GFCI report of 2014.
Practical implications – The paper should enable policy makers and practitioners to better
understand the future policy environment needed for extending the nancial centre status of both Hong
Kong and Shanghai.
Originality/value – This is the rst time (some) of the survey ndings that have ever been published,
and they represent a rich source of information – however, the authors will be examining the survey
data for future publications.
Keywords Location, International nancial centre, New economic geography
Paper type Research paper
1. Introduction
The development of an international nancial centre (IFC) has long been an interesting
topic for economists, other researchers and policy makers. Understanding the
development process and the critical success factors helps to a great extent in
formulating the suitable strategic development plan for the city and more efcient
allocation of resources. Among the various international cities which are commonly
viewed as nancial centres, the development dynamics of Hong Kong and Shanghai are
of high interest to many researchers not only due to the fast emerging growth of the
Chinese economy and its inuence on the world economy, but also due to the different
economic development paths of these two cities.
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1754-4408.htm
Hong Kong
and Shanghai
183
Journalof Chinese Economic and
ForeignTrade Studies
Vol.8 No. 3, 2015
pp.183-193
©Emerald Group Publishing Limited
1754-4408
DOI 10.1108/JCEFTS-07-2015-0019
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