The Financial Centres of Shanghai and Hong Kong: Competition or Complementarity?

Karreman, Bas; Knaap, Bert van der

doi:10.1068/a40230

Cited by 28 publications

(26 citation statements)

References 25 publications

(26 reference statements)

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“…This can be reflected in increasing technological change at banks. A more competitive financial centre can better adapt to changes in normative and economic conditions, and to dynamic, competitive mechanisms between financial centres, thereby preserving their profitable financial-service offerings (Lee and Schmidt-Marwede, 1993;Karreman and Van der Knaap, 2009) and their innovative role in the financial context. However, some limits exist regarding financial centres' beneficial effects on the risk and technological-change nexus.…”

Section: Background Discussionmentioning

confidence: 99%

Financial stability, competitiveness and banks' innovation capacity: Evidence from the Global Financial Crisis

Degl’Innocenti

Grant

Šević

et al. 2018

International Review of Financial Analysis

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This paper provides nuanced evidence on the effect of competitiveness and financial stability on banks' innovation-capacity (technological-change) levels during the Global Financial Crisis (GFC) in 2007-2008. We applied contemporary developments in nonparametric frontier analysis, employing a new index, the Global Financial Centres Index, to measure the business competitiveness of 45 financial centres. Our findings indicated a nonlinear and positive relationship between financial centres' competitiveness, banks' stability and innovation-capacity levels. This suggests that banks' ability to increase stability alongside financial centres' stability in a highly competitive environment acts as a protective measure against the GFC's negative effects.

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Section: Background Discussionmentioning

confidence: 99%

Financial stability, competitiveness and banks' innovation capacity: Evidence from the Global Financial Crisis

Degl’Innocenti

Grant

Šević

et al. 2018

International Review of Financial Analysis

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“…The networks of Shenzhen have never been examined in detail from the perspective of financial center network theory. Most discussions of the city's significance as financial center refer to the Shenzhen Stock Exchange, not actual networks of financial firms (Karreman and van der Knaap ). This paper demonstrates the tight integration of Shenzhen into mainland China's financial networks, while its local banks provide ties to nearby Hong Kong.…”

Section: Transformation Of Shenzhenmentioning

confidence: 99%

“…Similar to local networks, these intercity ones are both complementary and collaborative and involve mergers and acquisitions, loan consortia, private equity deals, and so on (Clark ; Lai ). Exchanges in various centers sometimes complement each other because they develop specializations, such as in types of trading (commodities, derivatives) and in types of stock listings (Karreman and van der Knaap ). Financial firms create office structures in various centers to implement transactions.…”

Section: Network Theory Of Financial Centersmentioning

confidence: 99%

Shenzhen in China's Financial Center Networks

Meyer¹

2016

Growth and Change

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Shenzhen, China, aspires to be an international financial center; however, its financial sector occupies an anomalous position in China's networks. The sector is tightly integrated into mainland networks, and Shenzhen's local banks provide access to Hong Kong's networks. Nonetheless, the city's proximity to Hong Kong, the Asia‐Pacific center of financial networks, confers few incremental benefits compared to those received by other mainland centers. The proposed Qianhai financial district, which is to be a laboratory for opening China's capital accounts, does not differentially boost Shenzhen because other financial centers will be allowed to experiment. A network theory of financial centers provides the explanatory framework for interpreting Shenzhen in China's financial center networks. Empirical analyses focus on Shenzhen's network ties with the Mainland and with Hong Kong. Shenzhen's future rests on the capacity of its financial firms to participate in the networks of South China, as well as to operate across the Mainland.

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“…Other studies on the evolution of China's financial city network (Cheng, Fan, and Chen ; Zeng et al ) have been based on attribute data, such as outstanding of deposits, premium income and number of employees, and have evaluated intercity relations by the Gravity Model but have been incapable of revealing virtual relations between cities. Most of these studies have also only focused on the evolution of the roles of leading cities, such as Beijing, Hong Kong, Shanghai and Shenzhen, in China's financial city network (Karreman and Van der Knaap ; Lai ; Meyer ).…”

Section: Introductionmentioning

confidence: 99%

The Changing Geography of Domestic Financial City Network in China, 1995–2015

Zhao¹,

Xue-bo²,

Song³

2018

Growth and Change

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Based on longitudinal office distribution data on top domestic financial enterprises, this study explores the evolution of China's financial city network in the last two decades by means of a social network analysis. The position of each city in financial city network is evaluated from two aspects which are external financial resources attraction and headquarters financial development based, respectively, on urban weighted indegree and urban weighted outdegree. Taking these two aspects together, the top echelons of the financial city network can be regarded as potential national or regional financial centers. Furthermore, by means of a panel data regression analysis, determining factors of financial city network evolution are explored from perspectives of location, institution, and social‐economy. We find that most cities have witnessed significant changes in city position, especially in terms of external financial resources attraction, and the influencing factors of financial development vary by region due to the disparities in regional financial development environments.

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The Financial Centres of Shanghai and Hong Kong: Competition or Complementarity?

Cited by 28 publications

References 25 publications

Financial stability, competitiveness and banks' innovation capacity: Evidence from the Global Financial Crisis

Financial stability, competitiveness and banks' innovation capacity: Evidence from the Global Financial Crisis

Shenzhen in China's Financial Center Networks

The Changing Geography of Domestic Financial City Network in China, 1995–2015

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