ABSTRACT
Will Shanghai in China, already having a population of more than 8 million, be the financial capital of the world by the middle of the next century (Fig. 6.1)? All the ingredients are now in place; it is also one of China’s largest cities with an historic base as a commercial and financial centre in a country of more than 1. 2 billion people. In recent years China has had over 10% economic growth, industrial production increased by 14% p.a., inflation has been below 10% and both the trade and current account balances have been well into surplus. China’s foreign currency reserves almost doubled in recent years and are now higher than those in Singapore. China’s clear aim is to create a world class centre based at Pudong on the east side of the Huangpu River, outside the traditional Paxi centre of Shanghai; 100 square kilometres may have been developed by the year 2000.
