The contemporary rise of China in the new geo-economy is increasingly pressurising the spatial distribution of financial activity in mainland China and Hong Kong. With the re-emergence of Shanghai, many people foresee the furture demise of Hong Kong as the most important financial centre for the China mainland. This paper shows that conviction seems rather premature. Bases on the concepts of comparative advantage and market segmentation, the extent to which Shanghai and Hong Kong can be considered complementary financial centres is assessed. By using the listings of mainland China based companies on the stock exchange of each financial centre, it is shown that both cities do not only appear to have distinct hinterlands but they also differ strongly in terms of sectoral specialisation.

Additional Metadata
Keywords China, Geography of finance, Hong Kong, Shanghai, financial centres, urban competition
JEL G21, Banks; Other Depository Institutions; Mortgages (jel), M, Business Administration and Business Economics; Marketing; Accounting (jel), M13, New Firms; Startups (jel), O18, Regional, Urban, and Rural Analyses (jel), O32, Management of Technological Innovation and R&D (jel)
Publisher Erasmus Research Institute of Management (ERIM)
Persistent URL
Karreman, B, & van der Knaap, G.A. (2007). The Financial Centres of Shanghai and Hong Kong: Competition or Complementarity? (No. ERS-2007-062-ORG). ERIM report series research in management Erasmus Research Institute of Management. Erasmus Research Institute of Management (ERIM). Retrieved from