Shanghai Develops Its Exchange

The Shanghai stock exchange is a growing proposition.It recently introduced stock index futures to its offerings,although it has only one-fifth of the volume of the New York exchanges and still needs a completely convertible currency.Shanghai is seeking to become a global financial center by 2020,and many new skyscrapers and apartment blocks have been built there in the past few years to support that ambition.
Dr.Fang Xinghai,Director General,Office of Financial Services,Shanghai Metropolitan Government,admitted that the Shanghai stock market is still largely closed to outsiders,but it is being opened up gradually.It will be a market of global size.Although it is not open yet,you can still call it a global financial center.The first logical step would be to open up the outflow capital account,so that their savings may be used more efficiently throughout the world.
The British bank HSBC has expressed an interest in selling shares in Shanghai.Initially,it was just financial companies who wanted to list there.Later,manufacturing firms,telecoms and consumer companies all expressed an interest.Even now,the Shanghai exchange is among the leaders in commodities futures,Mr.Fang asserted.