Hk & Shanghai Comparisions

The comparison of Shanghai and Hong Kong as competitors FINANCIAL SERVICES Hong Kong has a deeper crime syndicate of pecuniary run than Shanghai with insurance, law, accountancy and other original service firms already well established. The services welkin in Shanghai is expanding quickly but greatly lags Hong Kong with its industrial sector still contributing 46 share of economic growing compared with just 8 percent in Hong Kong. STOCK MARKET Although Shanghais burgeon forth market is worthy to a greater extent than than Hong Kongs, with a market capitalisation of $2.7 million compared with $2.3 trillion in Hong Kong, it has fewer listed companies. Hong Kong Exchange trades 1,297 stocks versus 869 in Shanghai. Shanghais exchange is more focused on retail investors -- 85 percent of the barter involves retail, according to Tjun Tang of Boston Consulting Group. Without a large, stable mingy of institutional investors, the market is subject to higher(prenominal) volatility. China is encouraging more foreign institutional investors to participate, however. FUTURES MARKET Hong Kong has a mature and participating financial futures market. It includes Hang Seng index futures -- which has everyplace 11,000 contracts -- H apportion index futures, interest rate futures and specie futures which started barter demise year. Shanghai doesnt yet trade financial futures.

It does have an dynamical commodities futures market, though. It currently trades copper, aluminum, zinc, steel, wire rod, rebar, natural rubber, evoke oil and gold. It plans to effect stock index futures in the come near future. intractable INCOME MARKETS Hong Kong is cold mor e active in orbiculate bonds than Shanghai,! where trans field of study bond trading is still very limited. Hong Kong change $11 billion of G3 currency bonds in 2009 compared with $982 million in Shanghai. However, national currency trading in Shanghai far surpasses that in Hong Kong, with Yuan trading much higher than domestic trading of the Hong Kong dollar. CURRENCY AND EXCHANGE CONTROLS Although it...If you want to get a unspoiled essay, order it on our website: OrderEssay.net

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