Index reveals Shanghai's rapid financial growth
By Zhang Fengming |
May 20, 2011, Friday
|
Print Edition
Print Edition
SHANGHAI'S financial industry has grown rapidly over the past five years, lead by a maturing market system, according to an industry index released ahead of yesterday's Lujiazui Forum.
The index, compiled by the Shanghai Financial Association and consultancy firm Roland Berger, rose by 124 percent to 2,238 in 2010 from 2006's base of 1,000.
The twice-yearly index was set up to gauge how the city's financial industry develops under the State Council's aim to build Shanghai into a leading global financial center by 2020.
The financial sector had a compound annual growth rate of 22 percent in the 11th Five-Year period that ended last year, 1.8 times the city's gross domestic product growth.
The index also gauges Shanghai's financial strength in areas including markets, professionals, institutions, innovation and regulatory environment.
Shanghai is strong in its financial market system, but needs to build up its strength in financial professionals, the index showed.
The financial market index grew at a compound annual growth rate of 35 percent in the past five years, followed by financial innovation with a growth of 29 percent. The index on financial professionals grew the slowest, at 5 percent.
The city's financial industry has already launched hiring sprees in financial hubs such as London and New York to lure experienced professionals.
About 230,000 financial professionals are working in the city currently, against Shanghai's population of 23.02 million residents.
"For a financial center, the most important thing is a mature market system," said Qi Bin, head of the research center at the China Securities Regulatory Commission.
Financial professionals and institutions will come to places which have markets and transactions, he said.
Shanghai is home to China's major stock market, the major commodities futures exchange, and the sole bourses for financial futures, foreign exchange and gold and platinum.
The index compilers consulted 47 market experts and surveyed 1,163 financial professionals to get a real measure of the development of the industry rather than depending solely on data.
They also compared Shanghai with other financial hubs, with the city leading in growth momentum compared to London, New York, Hong Kong and Singapore.
Shanghai was ranked No. 5 in the City of London's financial center ranking last year, up from its No. 23 position five years ago.
In a broader city ranking, Shanghai ranks the first in economic clout among 10 emerging market centers, according to the a study by PricewaterhouseCoopers and the Partnership for New York City.
According to the 26-city study released earlier this month, Shanghai also leads the world in foreign direct investment for both greenfield and capital invested and contends strongly with global leaders in domestic market capitalization, ranking fifth - just below London and above Hong Kong.
"The study shows Shanghai is moving in the right direction strategically and achieving success on a range of policy issues," said Nora Wu, a PwC partner. "But we also see areas, like ease of doing business and higher education, where the city has room to grow."
The Lujiazui Forum began yesterday with round-table discussions among economists, bankers and officials. High-profile regulators from, including the head of China's banking and insurance regulatory commission, will deliver keynote speeches today.
The index, compiled by the Shanghai Financial Association and consultancy firm Roland Berger, rose by 124 percent to 2,238 in 2010 from 2006's base of 1,000.
The twice-yearly index was set up to gauge how the city's financial industry develops under the State Council's aim to build Shanghai into a leading global financial center by 2020.
The financial sector had a compound annual growth rate of 22 percent in the 11th Five-Year period that ended last year, 1.8 times the city's gross domestic product growth.
The index also gauges Shanghai's financial strength in areas including markets, professionals, institutions, innovation and regulatory environment.
Shanghai is strong in its financial market system, but needs to build up its strength in financial professionals, the index showed.
The financial market index grew at a compound annual growth rate of 35 percent in the past five years, followed by financial innovation with a growth of 29 percent. The index on financial professionals grew the slowest, at 5 percent.
The city's financial industry has already launched hiring sprees in financial hubs such as London and New York to lure experienced professionals.
About 230,000 financial professionals are working in the city currently, against Shanghai's population of 23.02 million residents.
"For a financial center, the most important thing is a mature market system," said Qi Bin, head of the research center at the China Securities Regulatory Commission.
Financial professionals and institutions will come to places which have markets and transactions, he said.
Shanghai is home to China's major stock market, the major commodities futures exchange, and the sole bourses for financial futures, foreign exchange and gold and platinum.
The index compilers consulted 47 market experts and surveyed 1,163 financial professionals to get a real measure of the development of the industry rather than depending solely on data.
They also compared Shanghai with other financial hubs, with the city leading in growth momentum compared to London, New York, Hong Kong and Singapore.
Shanghai was ranked No. 5 in the City of London's financial center ranking last year, up from its No. 23 position five years ago.
In a broader city ranking, Shanghai ranks the first in economic clout among 10 emerging market centers, according to the a study by PricewaterhouseCoopers and the Partnership for New York City.
According to the 26-city study released earlier this month, Shanghai also leads the world in foreign direct investment for both greenfield and capital invested and contends strongly with global leaders in domestic market capitalization, ranking fifth - just below London and above Hong Kong.
"The study shows Shanghai is moving in the right direction strategically and achieving success on a range of policy issues," said Nora Wu, a PwC partner. "But we also see areas, like ease of doing business and higher education, where the city has room to grow."
The Lujiazui Forum began yesterday with round-table discussions among economists, bankers and officials. High-profile regulators from, including the head of China's banking and insurance regulatory commission, will deliver keynote speeches today.
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