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Article: Determining factors of the development of a national financial center: The case of China
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TitleDetermining factors of the development of a national financial center: The case of China
 
AuthorsZhao, SXB
Zhang, L2
Wang, DT1
 
KeywordsAsymmetric information
China
Financial center
Geography of finance
Information externalities
Information hinterland
MNC headquarter
 
Issue Date2004
 
PublisherPergamon. The Journal's web site is located at http://www.elsevier.com/locate/geoforum
 
CitationGeoforum, 2004, v. 35 n. 5, p. 577-592 [How to Cite?]
DOI: http://dx.doi.org/10.1016/j.geoforum.2004.01.004
 
AbstractThis study explores, theoretically and empirically, one of the important issues of the geography of finance, namely the location of high-level financial services. Specifically, we will try to explain why foreign financial services are spatially concentrated in a particular city so as to form a national financial center in China. By reviewing various forces behind the formation of a financial center, we argue that information problems have created the need for geographic agglomeration of financial activities based on the source of information. This is true even in an era when financial markets work through sophisticated telecommunication networks. Based on a survey of the actual location of multinational corporation (MNC) regional headquarters, and through investigation of reasons for the agglomeration of these headquarters, we anticipate that Beijing, as the prime source of policy information, is more likely than other Chinese cities to be the national pre-eminent financial center when the Chinese financial markets become more open to foreign firms in the near future. This study illustrates, using China as a case study, that geography still provides strong justification of why major financial services continue to have a high degree of spatial agglomeration in particular locations, despite the fact that the electronic transmission of information has substantially reduced the friction of distance. © 2004 Elsevier Ltd. All rights reserved.
 
ISSN0016-7185
2013 Impact Factor: 1.877
2013 SCImago Journal Rankings: 1.844
 
DOIhttp://dx.doi.org/10.1016/j.geoforum.2004.01.004
 
ISI Accession Number IDWOS:000223797000011
 
ReferencesReferences in Scopus
 
DC FieldValue
dc.contributor.authorZhao, SXB
 
dc.contributor.authorZhang, L
 
dc.contributor.authorWang, DT
 
dc.date.accessioned2008-05-22T04:22:31Z
 
dc.date.available2008-05-22T04:22:31Z
 
dc.date.issued2004
 
dc.description.abstractThis study explores, theoretically and empirically, one of the important issues of the geography of finance, namely the location of high-level financial services. Specifically, we will try to explain why foreign financial services are spatially concentrated in a particular city so as to form a national financial center in China. By reviewing various forces behind the formation of a financial center, we argue that information problems have created the need for geographic agglomeration of financial activities based on the source of information. This is true even in an era when financial markets work through sophisticated telecommunication networks. Based on a survey of the actual location of multinational corporation (MNC) regional headquarters, and through investigation of reasons for the agglomeration of these headquarters, we anticipate that Beijing, as the prime source of policy information, is more likely than other Chinese cities to be the national pre-eminent financial center when the Chinese financial markets become more open to foreign firms in the near future. This study illustrates, using China as a case study, that geography still provides strong justification of why major financial services continue to have a high degree of spatial agglomeration in particular locations, despite the fact that the electronic transmission of information has substantially reduced the friction of distance. © 2004 Elsevier Ltd. All rights reserved.
 
dc.description.naturepostprint
 
dc.format.extent139624 bytes
 
dc.format.extent29696 bytes
 
dc.format.mimetypeapplication/pdf
 
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dc.identifier.citationGeoforum, 2004, v. 35 n. 5, p. 577-592 [How to Cite?]
DOI: http://dx.doi.org/10.1016/j.geoforum.2004.01.004
 
dc.identifier.doihttp://dx.doi.org/10.1016/j.geoforum.2004.01.004
 
dc.identifier.epage592
 
dc.identifier.hkuros108728
 
dc.identifier.isiWOS:000223797000011
 
dc.identifier.issn0016-7185
2013 Impact Factor: 1.877
2013 SCImago Journal Rankings: 1.844
 
dc.identifier.issue5
 
dc.identifier.openurl
 
dc.identifier.scopuseid_2-s2.0-10944246480
 
dc.identifier.spage577
 
dc.identifier.urihttp://hdl.handle.net/10722/48725
 
dc.identifier.volume35
 
dc.languageeng
 
dc.languagefre
 
dc.languageger
 
dc.publisherPergamon. The Journal's web site is located at http://www.elsevier.com/locate/geoforum
 
dc.publisher.placeUnited Kingdom
 
dc.relation.ispartofGeoforum
 
dc.relation.referencesReferences in Scopus
 
dc.rightsCreative Commons: Attribution 3.0 Hong Kong License
 
dc.subjectAsymmetric information
 
dc.subjectChina
 
dc.subjectFinancial center
 
dc.subjectGeography of finance
 
dc.subjectInformation externalities
 
dc.subjectInformation hinterland
 
dc.subjectMNC headquarter
 
dc.titleDetermining factors of the development of a national financial center: The case of China
 
dc.typeArticle
 
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Author Affiliations
  1. The University of Hong Kong
  2. Chinese University of Hong Kong