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World

Shanghai: the next big finance center, or is it?

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World

Shanghai: the next big finance center, or is it?

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COMING UP:Shanghai: the next big finance center, or is it?

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Transcript

00:00:01
>> A ringing endorsement for China's financial capital. Movers and shakers in the money world naming Shanghai the top up and coming finance hub of the next few years in a poll by a leading London think tank. And with Beijing pledging to make the city a global finance hot spot by 2020, it's easy to see why.
00:00:19
But before international investors thought checking out office space, here's Reuters Breakingviews Asia editor Pete Sweeney with a reality check.>> So there's very little sign that Beijing is trying to follow through on this promise. Keep in mind that the benchmark of like globalization and international market means you have international companies listed for doing business.
00:00:38
There is not a single foreign company listed in Shanghai. There is very little foreign money in Shanghai. This is a domestic market serving domestic investors. Fundamentally it's a local procure market.>> China has been promising market reforms for a long time but they've largely stalled. IPOs are hard to get off the ground and stock markets are way down like creaky companies owned by the state.
00:01:02
>> So what about the city itself, can it help to lure in international investors? Well, again, that maybe a long shot.>> They've been considering taking the English language off the street signs and replace it with just characters which make the city much more difficult to navigate for any foreigner.
00:01:18
That's alongside a lot of signs that Beijing is less interested in having foreigners, foreign capital, foreign whatever doing significant amounts of business in China.>> So there you have it. Clear signs that the international finance district of the future may not be all it's cranked up to be.
00:01:33
And now it's the time to pay attention to those signs, cuz pretty soon they may only appear in Mandarin.