Author: yuan_zcen

Can Shanghai overrun Hong Kong? [Copy link] 中文

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Post time 2009-7-7 11:18:44 |Display all floors

Reply #30 guangzhou52's post

With a bigger population base, i doubt SHANGHAI can match so much potential, capability of the PEARL RIVER DELTA super centre mega metropolitan region!

At growth of 6% to 10% annually, it could take only 7 years to double the economy.
So, it could be US$40,000 per capita by 2025!

Include Taiwan, Fujien, Jiangxi, Hunan, Guangxi, it's a 250 million regional economy!
with the consumption capability of the United States by 2025!

ha ha ha


Yes, Shanghai and it's 90 million strong surrounding region is powerful, but it just do not have the financial clout.

The numbers and level of development counts.
A little GENTLEMAN COMPETITION should benefit all in China!


cheerios!


Green DRagon
Game Master

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Post time 2009-7-7 16:00:18 |Display all floors
Advantages of Hong Kong over Shanghai:

HK is a deep sea port, allowing huge container ships to come in and out of Hong Kong very fast.
China is an export economy. Most products are exported by sea. International shipping law is based on English law and maritime insurance and finance is based in London. Hong Kong is very accustomed to English law (which still applies to business law in HK) and shipping/maritime.
Civil law enforcement in Hong Kong is very transparent and governed still by English law, the oldest and most established legal system in the world. It is the preferred choice of business law for many countries around the world, including in the Middle East, South East Asia and America. Most judges are still very experienced English judges.
HK allows all currencies to be freely traded in and out of the territory. Compare that to the strict rules in Shanghai.
HK is a major transportation hub for the world. More airlines fly into and out of HK than almost any other airport in the world.
Tax is low in Hong Kong.
Anybody anywhere in the world can establish a business in HK very easily.
Excellent health care, education, infrastructure and technology.
It is easier for the factories in Guangdong to ship their products out of HK than out of Shanghai.

DIsadvatnages of Hong Kong over Shanghai

EXPENSIVE!!!
Hurricanes and bad weather during the summer.

Advantages of Shanghai over HK

Much cheaper.
Access to very low cost labour and materials from all over the mainland.
Shipping to the West Coast of the USA is faster.

Disadvatnages of Shanghai over HK
Government controls almost everything including currency trading, business licenses, high registered capital requirements, strict employment laws, high taxation.
Unpredictable legal system.
Too much guanxi and corruption, but govt is trying to stop it.

For these reasons HK will always be better than SHanghai. For the Chinese govt to make Shanghai work, it would need to make it into a SAR type region with complete autonomy, reduce taxes, allow free trading of currencies in and out of Shanghai, improved health care. The biggest problem is free trading of finance from SHanghai. This would require the RMB to be traded freely. If that happened, the RMB would probably rise by about 33% at least. THis would massively harm exports before China has become a consumer economy. This would then result in mass unemployment.

I live in Shanghai.....I have also worked in HK. Even though HK is better in all respects, I prefer the mainland because the people are MUCH NICER in the maindland. The Chinese people in HK seem to have a superiority complex over mainland Chinese, and an inferiority complex over Westerners. I much prefer the good old down to earth smiley happy mainland man over the White-wannabes in HK!!!

[ Last edited by Shanghey at 2009-7-7 04:04 PM ]

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Post time 2009-7-7 19:19:40 |Display all floors
Originally posted by Zsummersun at 2009-7-5 18:58
Shanghai has been very outstanding

The question is, will Guangzhou be able to surpass Hongkong in the next 5 or 10 or 20 years?

nothing is impossible

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Post time 2009-7-7 21:42:20 |Display all floors
I dont konw the aspect of these too mush

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Post time 2009-7-8 10:46:40 |Display all floors
Originally posted by seneca at 2009-7-7 23:10
No one wants to 'overrun' Hong Kongö on the other hand Shanghai no doubt is made of the stuff that will enable it to overtake Hong Kong.



impossible words    from a SNAKE
What's on your mind now........ooooooooooooooo la la....Kind Regards

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Post time 2009-7-8 12:16:16 |Display all floors
HK 'evelopment based on HK' history,that means its free economic environment . Now the worldwide financial crisis proves that tne maket
economy can't run whithout the gorverment's control.HK'development will be much more influenced compared with Shanghai.
   Now Shanghai is the centre of China in economy.Chinese goverment will do its best to protect it.

[ Last edited by prophetnow at 2009-7-8 12:17 PM ]

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Post time 2009-7-8 12:23:31 |Display all floors
depend on center government's attitude...

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