Why Shanghai Might Eclipse Hong Kong

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Shanghai
Introduction
Shanghai is China’s largest city with a population of 24.18 million people as of 2017. Since time immemorial, the city has served as a major trading spot as well as a gateway to the mainland China and this has been the case since after the Opium War. When China began its new economic agenda that aimed to transform the country and project it higher globally, Shanghai grew rapidly and has so far been able to sustain its growth. Yang (2002) notes that “during 1978-2000, Shanghai’s GDP achieved a 6.5 times increase and reached 48.749 billion U.S. dollars, with an annual rate of 9.5%” (1). Starting as only an industrial as well as a small commercial city, Shanghai has grown to become the mainland’s financial center, and a look at what is happening in China and in the world suggests that the city is yet to reach its limits. In the Global Financial Centres Index 24, Shanghai was seen to do well and had risen several points to overtake Tokyo. In the list, Shanghai is positioned at number five with the likes of Hong Kong, Singapore, London, and New York as those before it. Such a position shows that the city’s growth is progressive and the 25 point gain it got as per the list is a testament to that. In China, Shanghai is currently the largest city and financial center of the mainland China. Hong Kong, however, still holds pole position when all the cities of China are ranked. Currently, Hong Kong comes in at 3rd place in the global financial centres index. However, one cannot be faulted if they try to make a case for a time when Shanghai will eclipse Hong Kong and assume pole position as China’s largest financial center. Looking at the list of the global financial centres one notices something that is commonplace among the top four cities. Apparently, all these cities have either stagnated or are experiencing stunted growth. Of the four (New York, London, Hong Kong, and Singapore), Singapore is the one that gained the most points, and it got only 4 points. Shanghai, on the other hand, has maintained a positive outlook and with its 25-points increase, compared to Hong Kong’s two shows that its growth is happening rapidly. So, this article seeks to explore the notion of Shanghai eclipsing Hong Kong to become China’s largest financial center and eventually assuming pole position to become a global financial center.
Being a global financial center comes with a lot of advantages to a city and a country. Some of these advantages include an influx of investors and the shift of the world’s focus to the business possibilities of the region or city. What happens when the world focuses on a single region is that it grows and its opportunities are explored. Shanghai is a major player in the world today but attaining pole position in the global financial index means that the city is being stretched and pushed towards its full potential. A city that gains by 25 points while in the top 10 of the global financial center index is a city that has not yet reached its potential. Hong Kong appears to be stalling, and the future does look bright for Shanghai.
Why Shanghai Might Eclipse Hong Kong
There are various reasons...