What Is a Financial Hub?

Financial center narrowly refers to the financial market that is at the center of the operation of commodity currencies. In a broad sense, it refers to large and medium cities that play a central role in financial activities within a macro geographic region.

Financial Center

Right!

Financial center narrowly refers to

A financial center is the product of a highly developed commodity economy, and its formation must meet the following conditions.

(1) The financial center is formed with the development of the economic center, and it is also the highest form of the economic center. When the development of commodity production and commodity circulation is centered on a certain city, on the one hand, a large amount of monetary funds are released from the field of production and circulation, and the place to seek investment is required. Run. Therefore, only when a city has a very strong economic strength and has become an economic center in a certain region, can it generate, accumulate, and use huge amounts of money, so as to lay the foundation for the formation of a financial center.

However, the complexity and diversity of financial activities and the huge role of financial forces in economic development make it impossible for financial centers to be as universal as commercial centers and trade centers. That is, not every economic center has the function of a financial center, only Only a few economic centers will develop into financial centers. In this sense, the financial center is the highest form of the economic center.

(2) Financial centers should rely on a broad economic hinterland to form a developed capital market network. The urban economy itself is not enough to support the formation of financial centers. Because funds as a resource, there must be a very solid and reliable supply of resources in order to gather together to form a huge movement of funds and form the center of regulation in the movement.

At the same time, the development of the modern commodity economy has increasingly diversified financing means, objectively requiring the establishment of a sound capital market system, and the formation of a developed market network within and outside the region, so that capital circulation can take place in a wider range, thereby improving the use of funds. effectiveness.

(3) Financial centers must provide complete infrastructure and create a good circulation environment. The fund movement must be guaranteed by adequate and rapid information services. Therefore, cities are required to provide comprehensive infrastructure such as transportation and communications, create a good circulation environment, and attract as many banks and financial institutions as possible to move in the city. Otherwise, the establishment of a financial center can only be an ideal dream of the city.

Shanghai, short for

Shenzhen, referred to as "Shen" for short, is nicknamed Pengcheng, a city under the jurisdiction of Guangdong Province, a sub-provincial city, a national regional center city, and a megacity. It is located in the southern part of Guangdong, on the east bank of the Pearl River Delta, and separated by Hong Kong. It faces Daya Bay and Dapeng Bay in the east, the Pearl River Estuary and Lingdingyang in the west, Shenzhen river and Hong Kong in the south, and Dongguan and Huizhou in the north.

Shenzhen is the first special economic zone established by China's reform and opening up. It is also a window for China's reform and opening up. It has developed into an influential international city, creating a world-renowned "Shenzhen speed" and enjoying the "design capital", "Piano City", "Creator City" and other reputations. The border of Shenzhen City has China's largest number of entry and exit ports. Shenzhen is also an important border port city, and the Huanggang Port implements 24-hour customs clearance.

In 2010, the Global Financial Centres Index released by the City of London showed that Shenzhen was the ninth largest financial center in the world. Shenzhen's banking, securities, and insurance industry density, the number of foreign-funded financial institutions, and the proportion of employees are among the highest in the country. It is planned that by 2010, the added value of the financial industry will account for more than 15% of GDP. On June 8, the turnover of Shenzhen Stock Exchange surpassed that of Shanghai Stock Exchange once again, marking the increasingly stable status of Shenzhen's financial center. ^[5]

Shenzhen is one of the national securities capital market centers. Shenzhen Stock Exchange, one of the two stock exchanges in the country, has entered a new stage of large-scale and market-oriented development. In 2014, there were 1,618 companies listed on the Shenzhen Stock Exchange, an increase of 82 from the previous year. There were 1,657 listed stocks, an increase of 80. The total market value of listed companies was 1,257.294 billion yuan, an increase of 46.3%. The market capitalization of listed companies was 95128.44 billion yuan, an increase of 50.9%. The total turnover of the securities market for the whole year was 44470.619 billion yuan, an increase of 49.9%. ^[6]

Shenzhen is China's third largest insurance city and the first pilot city for insurance reform. The number of insurance company headquarters increased to 7, with 29 branches, and the number of insurance employees reached approximately 35,000. In 2014, the original insurance premium income of insurance institutions was 54.866 billion yuan, an increase of 17.0% over the previous year. Among them, property insurance was 21.573 billion yuan, an increase of 20.0%; life insurance was 33.293 billion yuan, an increase of 15.2%. The various compensation expenses were 15.576 billion yuan, an increase of 24.4%. Among them, property insurance business expenditure was 10.105 billion yuan, an increase of 17.1%; life insurance business expenditure was 5.471 billion yuan, an increase of 40.7%. ^[6]

In January 1982, the Shenzhen branch of Nanyang Commercial Bank opened, and it was the first foreign bank introduced in China after the founding of the People's Republic of China. In 2006, foreign banks entered the tide again. Three Hong Kong-owned banks, including Wing Lung, Dah Sing, and Shanghai Commercial, have opened branches. CITIC Ka Wah Bank and ICBC (Asia) opened in Shenzhen. Bank of East Asia and Hang Seng Bank opened branch offices. Shenzhen has 38 foreign-funded financial institutions, including 31 operating institutions and 7 representative offices. ^[7]