Shanghai should step up as finance hub, as Hong Kong ‘not enough’, proposal says

Shanghai has been urged to build itself into a hub serving the rising outbound investment needs of Chinese firms, potentially increasing rivalry with Hong Kong as both cities race to augment their status as financial centres.The suggestion by Liu Xiaochun, vice-president of the Shanghai-finance-institute" class="entity-link entity-organization" data-entity-id="61674" data-entity-type="organization">Shanghai Finance Institute and a senior banker with three decades of experience, was made in mid-June at a closed-door meeting hosted by China-finance-40" class="entity-link entity-organization" data-entity-id="155232" data-entity-type="organization">China Finance 40, a Beijing think tank comprising many top Chinese financial regulators, bankers and academics.“Just as American multinationals expanded globally with New York as their financial anchor, China’s outbound firms face a phenomenon shaped by unique international circumstances, and cannot rely on financial centres in other countries,” said Liu, former head of China" class="entity-link entity-organization" data-entity-id="45445" data-entity-type="organization">Agricultural Bank of China’s Hong Kong branch and former president of Hangzhou-headquartered China-zheshang-bank" class="entity-link entity-organization" data-entity-id="155233" data-entity-type="organization">China Zheshang Bank, according to a transcript of his speech published last week.