Competitions of Global Financial Centres and the rise of financial centres in China and Hong Kong

Abstract

Based on the examination of their developmental conditions, pathways and determining factors, this study reviews and summarizes the historical experiences of development of global financial centres. It attempts to identify and establish a theoretical framework that could give rise to a better account for the growth and development of international financial centres (IFCs). Based on the recent findings “Geography of finance”, “Law-finance” theory and the “Time-zone” theory, this paper synthesizes a theory, which could best explain the up and down and rise and fall of IFCs. Amid the further deepening of the current global financial crisis and the mighty rise of Chinese economy in the world economy, this study foresees and portrays the prospect of robust growth of Chinese financial centres, including Hong Kong, Shanghai, and Beijing and their possible roles and positions in the global financial centres network in the post-crisis era.