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The Financial Centres of Shanghai and Hong Kong: Competition or Complementarity?

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Author Info
Karreman, B.
Knaap, G.A. van der (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
Abstract

The contemporary rise of China in the new geo-economy is increasingly pressurising the spatial distribution of financial activity in mainland China and Hong Kong. With the re-emergence of Shanghai, many people foresee the furture demise of Hong Kong as the most important financial centre for the China mainland. This paper shows that conviction seems rather premature. Bases on the concepts of comparative advantage and market segmentation, the extent to which Shanghai and Hong Kong can be considered complementary financial centres is assessed. By using the listings of mainland China based companies on the stock exchange of each financial centre, it is shown that both cities do not only appear to have distinct hinterlands but they also differ strongly in terms of sectoral specialisation.

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Publisher Info
Paper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2007-062-ORG Revision_Date: 2008-04-17.

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Date of creation: 13 Sep 2007
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Handle: RePEc:dgr:eureri:300011788

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Keywords: Geography of finance financial centres urban competition Hong Kong Shanghai China

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This page was last updated on 2008-8-13.


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