Development Of Shanghai And Hong Kong Financial Center Comparative Study

Finance is the core of modern economy. Practice of various countries' economy has demonstrated that finance can significantly promote economic growth, as tremendous contributions Hong Kong financial center has made to the development of the region have proved. Answering the approaching international financialization, Shanghai proposed to build its financial center in the 1990s. Review of both domestic and abroad literature and basic theories concerning financial center is conducted first. The development of financial centers in London and New York is compared with that in Shanghai and Hong Kong. Analytical Hierarchy Process is employed to build a mathematical model for evaluating the building and development of Shanghai and Hong Kong financial center. Comparison of superiority between the two is carried out with reference to the related data. By further analyzing the weak points of Shanghai financial center, direction for Shanghai financial center's future development is studied in the article. Finally, basing on the studies, rational suggestions are put forward for the building of Shanghai financial center.