Can Shanghai become a global financial centre?

The underwhelming launch of the Shanghai Free Trade Zone (FTZ) has led many to reassess the likelihood of the zone becoming a test bed for far-reaching policy reform any time soon. If anything, the chances that Shanghai will establish itself as a global financial centre to rival Hong Kong and, one day, New York and London are even lower. Indeed, we suspect that Hong Kong will benefit rather than be harmed as China’s financial markets open to the world.