The Dynamics and Governmental Policies of Shanghai's International Financial Center Formation: A Financial Geography Perspective

This article first provides a conceptual and theoretical analysis of international financial centers (IFCs) by focusing on IFCs' main characteristics, categories, and policy regimes. It then reviews the policy initiatives driving Shanghai's IFC, coming from the central and local governments, and evaluates their strategic effects. Finally, I emphasize the disadvantages of Shanghai's IFC dynamics by focusing on the level of internationalization, the financial hinterland, the English professionals, and the legal system. The empirical study reveals that the construction of Shanghai's IFC has achieved great advances, motivated by its policy dynamics since 1990, but its global impact is still limited compared to New York and London. This study sheds light on the dynamics of Shanghai's IFC as a government-led model.