The rise of international financial centers in mainland China - 图文

14Table2

Measuresof?nancialcenters,2010.Source:Global2000list,2010.CityTotal?rm#NewYorkTokyoHongKongLondonParisTaipeiSeoulSydneyMumbaiBeijingShenzhenShanghai2927191815131211111044Rank123456789103131Assets($B)8339632152486099375635112914056834203427642K.Chen,G.Chen/Cities47(2015)10–22MarketvalueRank3434212820172652736($B)68032521542429059116246111786135137Rank24835281661711314Pro?t($B)20à249311500864775Rank32311125215171132011723Sales($B)5933303861054138151122632474444Rank243913389152553333Avg.rank14919236344122042427Note:Theaveragerankiscalculatedasthesumofrankoneachmeasurement(total?rm,assets,marketvalue,pro?tandsales)dividedby5.ThevaluesofthethreeChinesecitiesarehighlightedinbold.crisisthatspanned2008and2009,whentheysufferedseverelyfromdownturnsinstockmarketsandthesubsequenteconomicrecession.Incontrast,theriseofChinesecitiesintheglobal?nan-cialarenacanbeattributedtoarelativelystablenationaleconomyandaconsolidatedbankingsystem(Lambe,2009;Walter&Howie,2011).Withtremendoushelpfromthecentralgovernmentontheirbalancesheets,thelargestChinesebankswentpublicafter2005(Walter&Howie,2011),andby2011,thefourlargeststate-ownedcommercialbanksinChinahadmadethetop20listintheworld(BankersAlmanac).Thisindicatesthatthestategov-ernmentiscapableofconsolidatingits?nancialcentersandimprovingtheirrankingsintheworldinturbulenttimescharacter-izedbyaglobal?nancialcrisis,whencitiesinadvancedeconomiessufferfromrecession.TheriseofChina’s?nancialcentersisalsoaccompaniedbythegrowingChineseeconomyandthegrowingpowerofthecountry’scurrencyRMB.In2009,thePeople’sBankofChina,thecountry’scentralbank,triedtopromotetheglobalrecognitionoftheRMBFig.1.Geographyof?nancialcentersbasedonGlobal2000?nancial?rms,2005.Note:CreatedbytheauthorsbasedonGlobal2000,Forbes.K.Chen,G.Chen/Cities47(2015)10–2215Fig.2.Geographyof?nancialcentersbasedonGlobal2000?nancial?rms,2010.Note:CreatedbytheauthorsbasedonGlobal2000,Forbes.throughcurrencyswaplineswithAsianandLatinAmericantrad-ingpartners(Wang,2009).Inthesameyear,thegovernorofChi-na’scentralbankchallengedtheU.S.dollar’shegemonyinglobal?nanceandcalledfortheIMFtocreateasubstituteforthedollarasthereservecurrencyintheworldeconomy(FT,2009).AccordingtotheEconomist(2012c),thedollar’sin?uenceiswaningintheemergingworldandtheChineseYuanisgainingglobalpower.InEastAsia,inparticular,theU.S.dollarhasinthepastplayedadom-inantrole.ButRMBnowplaysagrowingroleintheAsia-Paci?c.Sevencurrenciesintheregionnowfollowtheyuanmorecloselythanthedollar.OutsideEastAsia,thein?uenceofRMBisstilllim-ited.ButwiththeinternationalizationofRMB,China’scurrencywillcontinuetogrowinstatureasitseconomyandtradingactivitygrowinsize,andtheriseofRMBsuggeststhecontinuedgrowthofChinese?nancialcenters.Infact,someexpertsforecastthatChi-na’scurrencywillsurpassthedollarasakeycurrencyaround2035(Economist,2012c).StrengthsandweaknessesofShanghai,Beijing,andShenzhenasfutureIFCsThissectionoffersanin-depthcomparisonofthesethreetopcitiesbyconsideringtheirstrengthsandweaknessesascandidatesforIFCstatus.OurhypothesisisthatalthoughtherelativesuccessofthethreeChinese?nancialcentersmayappeartobedrivenbysimilarfactorsincludingagglomeration,astrongstatewithincom-pletemarketizationisthesingledominantforceincreatingfavor-ableconditionsfor?nancialcenters.Suchahypothesisiskeytounderstandingandelaboratingthedevelopmentmodelofstatecapitalisminanemergingeconomywhereinthestatefunctionsastheleadingeconomicactorinatransitionalmarketin?uencedbyglobalforces.Totestthishypothesis,thecitieswerecomparedinregardtothefollowing:thecity’surbaneconomy,theroleofthestateinthecity’slocalinstitutionalenvironment,thecity’scommandofandinvolvementintheglobaleconomy,andthecity’spathdepen-dence.Thisfocusedcomparisonisbasedondatafrommultiplesources,namely,eachcity’syearlystatisticsfrom2000to2010togetherwithotherinformationfromChinaBankingRegulatoryCommission(CBRC),ChinaInsuranceRegulatoryCommission(CIRC),ChinaSecuritiesRegulatoryCommission(CSRC),thePeople’sBankofChinaQuarterlyBulletin,theShanghaiStockExchangeFactBook,andtheWorldFederationofExchanges.ShanghaiUrbaneconomyShanghai?ourishedasacenterofcommercebetweeneastandwestinthesecondhalfofthe19thcenturyandbecamethepre-dominant?nancialhuboftheAsianPaci?cinthe1930s.However,duringtheplannedeconomyera,thecity’sinternationalin?uencedeclinedsharplyanditspathasaregional?nancialcenterwasinterruptedabruptly.Inthe1990s,thecitybecameprosperousonceagainandbeganattractingforeigninvestment.UnlikeBeijingandShenzhen,Shanghaihasalargeurbaneconomyandisacenter16K.Chen,G.Chen/Cities47(2015)10–22Table3

Urbaneconomicmeasures.Source:CityStatisticalBook,multipleyears;convertedtoU.S.dollarsusingcurrencyrateoftheyear;http://money.cnn.com/magazines/fortune/global500/(accessedonJanuary25th,2011);CIRCandCSRC,2011.

ShanghaiPopulation2010(inthousands)Population2005(inthousands)Population2000(inthousands)GDP2010($billion)GDP2005($billion)GDP2000($billion)AverageannualGDPgrowthrate(2000–2010)PercapitaGDP2010($)PercapitaGDP2005($)PercapitaGDP2000($)Foreigndirectinvestment2010($million)23,02618,90216,086256.2115.657.716.1,2386061363015,307Beijing19,62515,38413,640208.485.138.118.5,218561429148490Shenzhen10,35782697008141.560.426.418.3,930742239624290formanufacturingandcommerceinmainlandChina(Table3).In2010,Shanghai’sGDPwas$256billionsurpassingHongKong($224billion)andSingapore($222billion).Shanghai’swealthisalsoattributedtoanaf?uenthinterlandcomposedof‘star’citiessuchasSuzhouandWuxi,whicharewellknownfortheirhigh-growthratepropelledbyforeigndirectinvestment(FDI)aswellasprivatelyownedmanufacturingenter-prises.Inparticular,FDIbringsininternationalcapital,newtech-nology,andmanagementexperience,resultinginhighproductivity.Inaddition,foreign?rmscompetewithlocalcompa-nies,whichmayalsoleadtogreateref?ciencyandimprovedover-allcorporategovernancestandards,therebycatalyzingthearea’seconomicgrowthandcompetitionintheglobalmarket.Becauseofitshistory,locationaladvantages,andforeigninvest-ment,theestablishedmanufacturingbaseoftheYangzi-DeltaareacreatesastrongdomesticmarketfromwhichShanghaicanriseasadominant?nancialcenterintheregion.Forinstance,thecityconcentrates41fundmanagement?rmsthatmanage45.3%ofthefundsnationwidein2013,morethananyotherChinesecity.Shanghaienjoysthemostvibranteconomyinthenationandis,therefore,astrongcompetitorintheglobalarena.185state-leveldevelopmentzonesinmainlandChina,andthepreferentialpolicieshavecontinuedtodraw?nancial?rms.GivenShanghai’seconomicachievementsandpotentialtogrowfurther,theStateCouncilpassedabillin2009thatenvisionedShanghaibecomingChina’sInternationalFinancialCenterandShippingCenterby2020.Thisbilldemonstratesthecentralgov-ernment’scommitmentofpolicysupportforShanghaiandsup-portsthecity’simageasapotentialIFC.Fouryearslaterin2013,aninitiativecalledtheShanghaiFreeTradeZone(SFTZ)waslaunchedwiththeapprovaloftheStateCouncil.Forthisinitiative,of?cialsoutlinedsixareaswhereindustriesincludingbankingwouldbeestablishedoverthenextthree-yearperiod.Accordingto?nancialexperts,themostsigni?cantadvancethattheSFTZcouldbringisthe‘‘predictabilityofregulation,”andthereishopethatregulatorypoliciesarebeingadministeredinatransparentandpredictablefashion(Economist,2013).Anotherpolicy-supportedadvantagethatShanghaienjoysisthedevelopmentandgrowthofastockexchange.In1990,theShang-haiStockExchange(SSE)wasestablishedbytheChinesegovern-ment.SSEprovidesaplatformforcompaniestoraisecapitalandenhancecorporategovernanceandenablesinvestorstomobilizesavingsandcreateinvestmentopportunitiesforindividuals.Grad-ually,Shanghaiestablisheddiverse?nancialmarkets,includingfuturestrading,aforeigncurrencyexchange,andinterbanklend-ing.In2002,theChinesegovernmentallowedapprovedforeigninstitutionalinvestorstoinvestinlocalChinesestocks.InApril2014,PremierLiKeqiangexpressedtheChinesegovernment’ssup-portformutualaccessbetweenthestockmarketsofShanghaiandHongKong.Underthisscheme,HongKongbrokerswillbeabletoplaceordersontheShanghaiStockExchangeandChinesebrokersontheHongKongStockExchangeonbehalfoftheirclients(PeopleDaily,2014).Theannouncedguidelinespromisethreenewdevel-opmentsforinternationalinvestors.First,internationalinvestorswillhavedirectaccessto‘‘eligible”individualstockslistedontheShanghaiStockExchange.Second,individualinvestorswillhavedirectaccesstotheSSEthroughtheirbrokersinHongKong.Third,overseasinvestorswillhavegreateraccesstoChina’sdomesticstocksthantheydoatpresent.ThesenewpoliciesareexpectedtoprovideastrongboosttothecapitalmarketinShanghai.CommandofandinvolvementintheglobaleconomyShanghaihasbene?tedfromstrongstatepoliciesthattriggeredapowerfullocalizationeffect,whichattractedforeign?nancial?rms.By2013,445MNCshadestablishedregionalheadquartersinShanghai,farexceedingthenumberinBeijing,142.TheseMNCsincludeworld-renownedbankssuchasCitibank,HSBC,andStan-dardChartered,whichmaygenerateasnowballeffectwherebymoreforeign?nancialinstitutionsareattractedtothecityandstrengthenthecity’simageasapotentialIFC.Theseforeignbankshaveplayedanimportantroleinintroducingadvancedmanage-mentexpertise,intensifyingcompetitionintheChinese?nancialTheroleofthestateShanghaiwouldnothavebecomea?nancialcenterwithoutpolicysupportfromthecentralgovernment(Table4).In1990,thestatecouncildeclaredtheopeningofLujiazuiDistrictlocatedintheeasternsideofShanghaiasthe?rst?nancialdistrictofthenation.Financial?rmsinthisdistrictenjoyspecialtaxpolicies,incentives,andsupportinregardtomatterssuchastrainingper-sonnelandexpeditedvisaservices.Basedonthesepolicies,domes-ticandforeign?nancialinstitutionshaveestablishedbranchesinthearea.In2005,theStateCouncilreaf?rmedthepositioningoftheLujiazuiareaastheonly?nanceandtradezoneamongtheTable4

Institutionalsupport.CityShanghaiStateandlocalpolicies??In1990Lujiazui?nancialdistrictwasestablishedbytheStateCouncil??In2005theStateCouncilreaf?rmedthepositioningoftheLujiazuiareaastheonly?nanceandtradezoneamongthe185state-leveldevelopmentzonesinmainlandChina??In2009theStateCouncilpassedabillthatenvisionsShanghaiasChina’sInternationalFinancialCenterandShippingCenterby2020??In2013ShanghaiFreeTradeZone(SFTZ)waslaunchedinSeptemberwiththeapprovalfromtheStateCouncil??In1993theStateCouncilapprovedtheMasterPlanofBeijinganda‘‘FinancialStreet”inthecentralcitywasdesignedtohostallregulatoryagencies??In2001BeijingCBDAdministrativeCommitteewasestablishedtoplan,build,andmanagethebusinessdistrict.In2008Beijinggovernmentdecidedtogrowthecityintoaworld?nancialcenter??In2009thecitygovernmentannouncedtobuildBeijingintoaWorldCity??In1980itbecamethe?rstareainChinatobedesignatedasaspecialeconomiczone??In2010themasterplanofQianhaiBaywasapprovedtoestablishamore‘‘special”zoneBeijingShenzhenK.Chen,G.Chen/Cities47(2015)10–22Table5

Financialinstitutions.Source:CityStatisticalBook,multipleyears;convertedtoU.S.dollarsusingcurrencyrateoftheyear;CIRCandCSRC,2011.

ShanghaiStockexchangeDomesticbanks(top10)??ShanghaiStockExchange??BankofCommunications??ShanghaiPudongDevelopmentBankBeijingN/A??IndustrialandCommercialBankofChina??AgriculturalBankofChina??ChinaConstructionBank??BankofChina??MinshengBankingCorp??ChinaCITICBank??ChinaLifeInsuranceCompany??NewChinaLifeInsurance??PICCLifeInsurance??TaikingLife??SunshineInsurance??15,accountingfor17.5%ofnationalcapitalShenzhen??ShenzhenStockExchange??ChinaMerchantsBank17Domesticinsurancecompanies(top10)??ChinaPaci?cInsurance??TaipingLife??PingAnofChina??SinoLifeFundmanagement?rms(nationaltotalof89inNovember2013)??41,accountingfor45.3%ofnationalcapital??22,accountingfor23.9%ofnationalcapitalmarket,andpromotingtheimprovementofef?ciencyandcorporategovernanceoflocalbanks.Theinvolvementofforeign?nancialinstitutionsimprovestheroleofShanghaiasamajorconnectinggatebetweenChinaandtherestofthe?nancialworldandasaregionalcommandcenterwithglobalreach.However,oneofShanghai’smostsigni?cantdisadvantagesasanational?nancialcenteristhelackofregulatorypower,dominantcommercialbanks,andmajorinsurancecompaniesinthenation(Table5).AlthoughthesecondheadquarterofthePeople’sBankofChinaislocatedinShanghai,thecitydoesnothosttheheadquartersofanyofthethreeregulatorybodiesinbanking,insurance,orsecurities—allofwhichareofparamountimportanceinregardtodeterminingandimplementingpolicies.Furthermore,ofthetoptenChinesebanks,onlytwoareheadquarteredinShanghai:theBankofCommunicationsandtheShanghaiPudongDevelopmentBank.Theformerisranked6thnationwide,andthelatteris10th.Ofthetopteninsurancecompanies,Shanghaiishometoonlytwo:ChinaPaci?cInsuranceandTaipingLife.Incomparison,Beijinghassixbanksfromthetoptenlistand?veinsurancecompaniesthatleadinthenation.BecauseShanghailackspowerfuldomestic?nancialinstitu-tions,itisunderminedintermsofitsdrivetobecomeacapitalofcapitals,abreedinggroundtogrow,train,andattract?nancialprofessionals,acenterfor?nancialrenovation,andamagnettogeneratelocalizationeconomy.Further,becausefewdomestic?rmsareheadquarteredinShanghai,italsolagsbehindBeijingasanationalcommandandcontrolcenter.Asof2013,Shanghaihostedonlyeightofthe87Chinese?rmsthatmadetheFortune500list,comparedto48inBeijingandfourinShenzhen(Table5).ThisisbecausemostChi-neseMNCsarestate-ownedenterprises(SOE),mostofwhichareheadquarteredinthecapitalcityofBeijingsothatthepartycaneasilymanagethem.TheseSOEscontrolalargeportionofthenationaleconomy,particularlyinstrategicsectorswherenomarketcompetitionisallowed.WiththecontinuedgrowthofChina’seconomy,manySOEshaveexpandedgloballyinthepastdecadetoadvancetheparty’spoliticalaimoffosteringnationalchampions(Economist,2011b,2012a;Szamosszegi&Kyle,2011).Withoutalargenumberofmultinationalcorporationhead-quarters,Shanghaicanhardlybeconsideredapowercenteronanationalscaleandcertainlynotinglobalterms.capitalofChinain1949.Sincethen,thecentralgovernmentbuiltthecity’sheavyindustryaswellasitspublicsectors.Theeconomicreformsofthe1990screatedaneconomicboomforBeijingwiththein?uxofforeigncapitalandtechnology.Atpresent,Beijingenjoysalarge,vibrant,andgrowingurbaneconomy,withGDPandpercapitaGDPcomparabletothoseofShanghai(Table3).However,comparedtoShanghai,Beijinghasyettodevelopanextensiveeconomichinterlandwithestablishedmanufacturingchains.Itslong-timecompetitor,thenearbycityofTianjinhasrecordedimpressiveGDPgrowthratesinrecentyears.Itsotherimmediateneighbor,HebeiProvinceranked11thnationwideforperCapitaGDPin2010.Thecity’snorthernneighbor,NeimengguProvinceranked7th,whereasaneighboringprovincetothewest,Shanxi,ranked21st.Incomparison,Shanghai’stwoneighboringprovincesZhejiangandJiangsuranked4thand5th,respectively.ThisisanimportantreasonthatsomeMNCschosetorelocatetheirregionalheadquarterstoShanghaiinthemid-1990stotapintoamoreaf?uentandfullydevelopedeconomichinterland(People,2013).BeijingUrbaneconomyComparedtoShanghaiasacommerceand?nancecenter,BeijingwasapoliticalandculturalcenterbeforeitbecametheTheroleofthestateBeijing’sriseasanational?nancialcenterisoftenattributedtoits1993MasterPlan,approvedbytheStateCouncil.AccordingtothePlan,a‘‘?nancialstreet”inthecentralcitywasdesignedtohostallregulatoryagencies,includingthecentralbank,theChinaBank-ingRegulatoryCommission,theChinaInsuranceRegulatoryCom-mission,andtheChinaSecuritiesRegulatoryCommission.Italsohoststheheadquartersofsomemajorstatebanksandnon-bankingenterprises.Thedevelopmentofa?nancialstreethasgeneratedastronglocalizationeconomy.Firstofall,thespatialagglomerationofthecentralbankandgovernmentregulatoryagenciesservesasa?nan-cialpolicycenterandinformationheartland(Zhao,2003).Com-paredtothepoliciesofadvancedeconomies,?nancialpoliciesareusuallynottransparentinChina.Geographicproximitytoaninformationcentermaybeextremelyimportantfor?nancialinsti-tutionstoswiftlyaccessinformationandmakeinterpretationscor-rectly.Infact,the?nancialstreetattractedsomeworld-renownedbanks,suchasGoldmanSacks,JPMorgan,andUBS,whichsetupregionalof?cesthere.Inaddition,intheearly21stcentury,someinsurancecompaniesmovedtheirheadquartersfromGuangzhoutoBeijinginordertofostercommunicationwiththeCIRC(JRJ,2011).TherelocationchoiceofthesebusinessesindicatesBeijing’sappealasaninformationcenter.Also,byhostingmajorstatebanksandinsurancecompanies,the?nancialstreethasbecomethenationalcenterof?nancialpaymentandsettlement,and?nancialtalent.Around2010,90%ofChina’screditandloansand65%ofits