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Differentiated Markets: Shanghai, Beijing and Hong Kong in China’s Financial Centre Network

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  • Karen Lai

Abstract

This paper examines the roles of Shanghai, Beijing and Hong Kong as financial centres by utilising interview and secondary data to analyse the decision-making of financial and regulatory actors, and the different functional roles of foreign banks in those cities. Their intercity relations demonstrate a complex mix of competition and collaboration that embeds them in evolving networks of interdependence. Empirical findings indicate differentiated markets leading to the distinctive development of Shanghai as a commercial centre, Beijing as a political centre and Hong Kong as an offshore financial centre, with all three financial centres performing distinctive and complementary roles within the regional banking strategies of foreign banks. The analysis first explains Hong Kong’s continued dominance in the region and, secondly, reveals insights into changing intercity relationships between these prominent Chinese cities that contribute to their distinctive development as financial centres.

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  • Karen Lai, 2012. "Differentiated Markets: Shanghai, Beijing and Hong Kong in China’s Financial Centre Network," Urban Studies, Urban Studies Journal Limited, vol. 49(6), pages 1275-1296, May.
    • Handle: RePEc:sae:urbstu:v:49:y:2012:i:6:p:1275-1296
    DOI: 10.1177/0042098011408143
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    Cited by:

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    2. Kirsten Martinus & Thomas Sigler & Iacopo Iacopini & Ben Derudder, 2019. "The role of tax havens and offshore financial centers in Asia-Pacific networks: evidence from firm-subsidiary connections," Asian Business & Management, Palgrave Macmillan, vol. 18(5), pages 389-411, November.
    3. Peter J. Taylor & Ben Derudder & James Faulconbridge & Michael Hoyler & Pengfei Ni, 2014. "Advanced Producer Service Firms as Strategic Networks, Global Cities as Strategic Places," Economic Geography, Clark University, vol. 90(3), pages 267-291, July.
    4. Csomós, György, 2018. "Reprint of “A spatial scientometric analysis of the publication output of cities worldwide”," Journal of Informetrics, Elsevier, vol. 12(2), pages 547-566.
    5. Oana Mionel & Viorel Mionel & Cristina Mihaescu, 2014. "The Role of Urban Financial Centers within the Economy of Global Cities," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 3(3), pages 155-168, June.
    6. Sin-Yu Ho & Nicholas M Odhiambo, 2015. "Stock market performance in Hong Kong: an exploratory review," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 29(1), pages 47-61, May.
    7. Tsui, Wai Hong Kan & Fung, Michael Ka Yiu, 2016. "Causality between business travel and trade volumes: Empirical evidence from Hong Kong," Tourism Management, Elsevier, vol. 52(C), pages 395-404.
    8. Allan Watson & Jonathan V. Beaverstock, 2014. "World City Network Research at a Theoretical Impasse: On the Need to Re-Establish Qualitative Approaches to Understanding Agency in World City Networks," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 105(4), pages 412-426, September.
    9. Dariusz Wójcik & Eric Knight & Vladimír Pažitka, 2018. "What turns cities into international financial centres? Analysis of cross-border investment banking 2000–2014," Journal of Economic Geography, Oxford University Press, vol. 18(1), pages 1-33.
    10. Natacha Aveline-Dubach, 2017. "Embedment of “Liquid” Capital into the Built Environment:," Post-Print halshs-01563507, HAL.

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