- Business and Employment
More Competitions Ahead between Hong Kong and Shanghai
Being the two most important financial centers in China, competitions between Hong Kong and Shanghai has been keen and long-lasting.
Earlier in 2010, the Hong Kong Stock Exchange already formulated its 2010-2012 strategic plan to begin launching more offshore CNY (or Yuan) financial products, and also to establish H.K. as an international CNY offshore center. Later in December the same year, to further promote listing of Chinese enterprises, the Hong Kong Stock Exchange announced to allow the use of the mainland China accounting rules for those Chinese enterprises listed in H.K.
In the same month, in order to deal with the ruthless competitions, the Shanghai Stock Exchange also announced to set up its 2010-2020 strategic plan to develop Shanghai as an international financial center in China.
The strategic plans being implemented by the two Chinese financial centers have made the competitions more intense in this year. In March, the Hong Kong Stock Exchange began to implement an extension of trading hours from four to five hours per day, in order to have more overlap on trading hours with the Shanghai Stock Exchange. In May, a new Exchange operator, named HKMEx (H.K. Mercantile Exchange) started to operate in Hong Kong. In June, the H.K. Treasury Markets Association (TMA) introduced a USD/CNY fixing to further promote the development of the offshore CNY market in Hong Kong. Both HKMEX and TMA have taken their part to reinforce Hong Kong as a more successful international financial center and offshore CNY center.
Back to Shanghai, after the Shanghai World Expo ended by October 2010, the city found its property market was actually too hot and might hinder economic growth in the long run. As a result, with the support from the Chinese central government, Shanghai decided to introduce property taxes together with Chongqing since January this year, in order to cool the property market and to secure longer-term growth. After that, in February, the Shanghai Stock Exchange opened its door to agree a dual listing program with the BM&F Bovespa, the largest exchange operator in Brazil and South America.
We all know that the competitions between Hong Kong and Shanghai will continue and probably will never come to an end. There will surely be more competitions ahead between the two cities, especially in the tourism and the financial sectors. In April, a new Disneyland Resort started construction in Shanghai. This Shanghai Disneyland Resort will be the second Disney Resort in China after the Hong Kong Disneyland and will be the sixth Disney Resort on our planet. The Shanghai Disneyland Resort, upon completion, will undoubtedly boost the tourism industry and related economic activities of the city. It will also be likely to initiate a competition directly with the Hong Kong Disneyland for Chinese tourists.
In financial sector, the competitions between the two cities are even more hot-headed. You may find the rewarding details at: Shanghai vs Hong Kong as Leading Financial Center. To learn more about the development of financial centers in Hong Kong and Shanghai, you may read also: Shanghai vs Hong Kong in Financial Centre Development for additional useful information.