Shanghai in No.5 spot among financial hubs
By
Chu Daye
Shanghai
will likely surpass Singapore as the world's fourth-largest financial hub
within three years, based on the metrics of a recent ranking of global
financial centers that put the city in fifth position, thanks to its strength
in the volume of products and deals, as well as further opening-up, a Chinese
analyst said on March 17.
Shanghai
retained the No.5 position but saw its score move closer to those of global
hubs including New York and London, according to the 25th edition of the Global
Financial Centres Index (GFCI 25) compiled by the China Development Institute
in Shenzhen, South China's Guangdong Province and London-based Z/Yen Partners.
The
GFCI 25 provides evaluations of future competitiveness and rankings for more
than 110 major financial centers has received considerable attention from the
global financial community.
China
announced an action plan in January to transform Shanghai into an international
financial center by 2020, with a focus on yuan-denominated products and strong
financial resource allocation capability.
New
York remains in first place in the index with 794 points, followed by London,
Hong Kong and Singapore. Shanghai was just ahead of Tokyo with a score of 770
points. In the previous survey in September 2018, Shanghai's ranking was also
fifth with a score of 766 points.
"This
ranking focuses on volume. Shanghai has the vast Chinese domestic market as its
source for growth," Xi Junyang, a professor at the Shanghai University of
Finance and Economics told the Global Times on March 17.
Shanghai
made great progress in 2018 in terms of the volume of deals and the growth in
types of financial products, Xi said. Its level of openness also greatly
improved.
In
2018, Shanghai had financial market turnover of $245.15 trillion, up 15.2
percent year-on-year, according to news site jiemian.com on Friday.
Indication
of greater openness in recent years in Shanghai included the
internationalization of the Shanghai Gold Exchange and the creation of a crude
futures exchange. A bond connect plan is also in the works to integrate bond
investors with the global market, and the daily quota on the Hong Kong-Shanghai
stock link program has been expanded.
"Improved
rankings of Chinese cities such as Shanghai, Shenzhen and Hong Kong reflect the
advance of China's financial industry and its trend of greater openness. Their
influence is also rising as global economic activity shifts toward Asia,"
Zhao Xijun, deputy director of the Finance and Securities Research Institute at
the Renmin University of China, told the Global Times.
When
the index was first published in 2007, Shanghai only ranked in 24th position
with a score of 576 points. Its gap with the No.1 global hub narrowed by 165
points over the years,said jiemian.com. .
However,
experts saidto catch up with global leaders, Shanghai still has a lot to do.
"There
has been much progress but there is also much room for improvement," Zhao
said. "We must not forget that the reason China develops its financial
industry is to let it serve the overall economy.
Source:Global
Times/People’s Daily
The
632-meter-high Shanghai Tower is a landmark building in Lujiazui Financial and
Trade Zone of Shanghai. (Photo: People’s Daily Online)
Shanghai in No.5 spot among financial hubs
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