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How Shanghai's ambition to be the 'future of finance' fell apart

The article from the Australian Financial Review discusses how Shanghai's ambition to become a global financial hub has encountered significant setbacks. Initially, Shanghai aimed to rival cities like New York and London by leveraging its strategic location, government support, and the promise of a burgeoning Chinese economy. However, several factors have contributed to its faltering progress. Regulatory crackdowns on tech giants, geopolitical tensions, particularly with the United States, and a slowing Chinese economy have deterred foreign investment. Additionally, the stringent zero-COVID policies and the subsequent economic recovery challenges have further complicated Shanghai's financial aspirations. The article highlights the exodus of foreign firms, the lack of transparency in financial dealings, and the government's heavy-handed approach in market regulation as key reasons why Shanghai has not yet realized its potential as a leading financial center. Despite these obstacles, there remains a cautious optimism about Shanghai's future, with some believing that reforms and a more open market could still turn the tide.

Read the Full The Australian Financial Review Article at:
[ https://www.afr.com/world/asia/how-shanghai-s-ambition-to-be-the-future-of-finance-fell-apart-20241202-p5kv8h ]