Brian Schwarz, the author of China Challenges, and Isabel Ding write:
After the State Council's announcement last March that Shanghai would be turned into a global financial center by 2020, you could hear a collective sigh of disappointment in Shenzhen and Tianjin, two other cities which were competing for the title of China’s financial center, and had now lost the opportunity to the Yangtze port city. Hong Kong, the traditional financial center of China, now also has to reposition itself to deal with another nearby city offering many of the same services.
But a lot would have to be done for Shanghai to move up the ranks of world financial centers. Though the city has large stock and commodities markets, it is currently held back by regulations that only allow for small amounts of currency to be exchanged, a small to non-existent market for derivatives, including bonds, futures, and short selling contracts, and a relatively minor banking sector compared to Beijing.
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