Is Shanghai the Next Wall Street?

Maybe not, but it'll give London and New York a run for their money say finance students at a top Chinese university

With the UK and US governments raising taxes on high earners and cracking down on City and Wall Street bonuses, will Shanghai become the world's leading financial center?

Students at the new Shanghai Advanced Institute of Finance (SAIF) think so, though it won't happen overnight.

Christina, Rocky and Joyce cite heavy government regulation, the lack of complex products like derivatives and options, China's fixed currency, and a shortage of talent as key challenges that must be overcome.

The trio are members of the first intake at prestigious Jiao Tong University's new finance institute. The Institute's aim is to "attract and develop top talents for the financial world and to generate cutting-edge knowledge in finance theory and applications."

A recent survey of executive confidence by law firm Eversheds suggested that Shanghai will overtake the UK as a global financial center by 2019. The survey covered business leaders in New York, London, Shanghai, Mumbai, the United Arab Emirates.

Comments.

James Gao

Friday 5th March 2010, 11.15 (Europe/Paris)

The Chinese Government has committed to develope Shanghai into a Global Financial and Shipping Center by 2020. The city should take advantage of this support as well as the opportunities coming from the rest of the world which gives increasing attention to China's fast growing economy. Way to go, China!

Sunny Li

Friday 5th March 2010, 21.20 (Europe/Paris)

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Kaixu Xiang

Wednesday 2nd June 2010, 13.08 (Europe/Paris)

Frankly, I'm not an optimist upon this issue. It's not because I'm doubting any little bit of the wisdom or determination of Chinese people but the required objective conditions for building such a financial center. A truly international center, from my point of view, is to some extent historically accumulated but shortly built, which at least involves cultural, economic and political efforts. In London and Newyork, generations of relative talents have been fostered via hundreds years of turbulence, crazy and even war. System has been prefected and flourished by the booming free market and all kinds of business, whereas ,undeniably, jeopardising behavior occur occasionally.

Hardware or bonus can hardly attract world's attention but the market itself.

Thus, what we lack right now is financial innovation and endeavor to openness, where is the chronic dilemma of our system, requiring much more than money and intelligence.

Hardware or bonus can hardly attract world's attention but the market itself.

Thus, what we lack right now is financial innovation and endeavor to openness, where is the chronic dilemma of our system, requiring much more than money and intelligence.

Somrat Khumpibal

Sunday 11th July 2010, 18.26 (Europe/Paris)

I think I believe that a lot of investment and money is going to be flowing into china in the next few years, and that could boost their status, and to think that how many percentage of the world's production originate from China, I do think they have a chance of be coming the finance centre. Besides, America and the Uk is not doing so well at the moment (?).

Somrat Khumpibal

Sunday 11th July 2010, 18.26 (Europe/Paris)

I think I believe that a lot of investment and money is going to be flowing into china in the next few years, and that could boost their status, and to think that how many percentage of the world's production originate from China, I do think they have a chance of be coming the finance centre. Besides, America and the Uk is not doing so well at the moment (?).

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