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Saturday 6 March 2010
Shanghai leaves Hong Kong behind in size of the economy in 2009
Shanghai’s economy exceeded the size of Hong Kong’s for the first time in at least three decades after stimulus spending helped China skirt the global crisis and lead the world out of recession.
Shanghai leaves Hong Kong behind in size of the economy in 2009
06 March 2010
Shanghai’s economy exceeded the size of Hong Kong’s for the first time in at least three decades after stimulus spending helped China skirt the global crisis and lead the world out of recession.
Shanghai’s gross domestic product (GDP) grew 8.2 per cent to the equivalent of US$218.3 billion in 2009 compared to a 2.7 per cent contraction to US$210.7 billion for Hong Kong, according to data compiled by Bloomberg. The preliminary reading on Shanghai was published in January and Hong Kong’s release came last week.
The figures highlight 30 years of free-market policies that have spurred China to become the world’s third-largest economy and its No 1 exporter. Shanghai’s rise may fan concern in Hong Kong that the mainland city will regain its position as China’s dominant financial centre, after surpassing the former British colony as the nation’s biggest port and stock-market operator.
‘Hong Kong’s role as the bridge linking China and the West is diminishing due to the further opening up of China,’ said Hubert Tse, 36, a partner at law firm Boss & Young in Shanghai, who moved to the city from Hong Kong in 2003. ‘I’m witnessing history as China continues to power ahead.’
Bloomberg data giving US dollar comparisons for the cities’ economies back to 1981 showed Hong Kong previously leading Shanghai. David Cohen, an economist at Action Economics in Singapore, said ‘based on those nominal figures, converted at the prevailing rates, it would appear that the Shanghai economy is slightly larger’.
At the same time, China’s data may have less credibility. Jian Chang, a Hong Kong-based economist at Barclays Capital Asia Ltd, said there are ‘always doubts and questions’, because provincial numbers fail to tally with national figures.
Both cities have benefited from China’s opening up after then leader Deng Xiaoping began unfettering the Communist Party’s hold on the economy in 1978, following decades of self- imposed isolation under Mao Zedong, the founder of the People’s Republic of China.
Mr. Tse, a Hong Kong native, is wagering that Shanghai, the birthplace of HSBC Holdings plc and American International Group Inc, will regain its prewar role as China’s financial capital. HSBC was co-founded in Hong Kong.
Shanghai’s rise is ‘not a threat’, Hong Kong Chief Executive Donald Tsang told reporters at a briefing in Beijing yesterday, adding that the cities can find ‘new opportunities for cooperation’.
Mr. Tsang said Chinese Vice-Premier Wang Qishan told him on Thursday that Hong Kong’s position as an international financial centre can’t be replaced for reasons including its market and legal systems and talents.
‘Shanghai has a population of around 19 million people, which is almost three times that of Hong Kong, and a fast-growing economy, so it is not surprising’ that the mainland city’s GDP is now larger, Hong Kong government economist Helen Chan said on Thursday.
Hong Kong trounces Shanghai on output per person. The most recent per-capita GDP figures, for 2008, show Hong Kong with US$30,977 and Shanghai at US$10,713. -- Bloomberg
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Shanghai leaves Hong Kong behind in size of the economy in 2009
06 March 2010
Shanghai’s economy exceeded the size of Hong Kong’s for the first time in at least three decades after stimulus spending helped China skirt the global crisis and lead the world out of recession.
Shanghai’s gross domestic product (GDP) grew 8.2 per cent to the equivalent of US$218.3 billion in 2009 compared to a 2.7 per cent contraction to US$210.7 billion for Hong Kong, according to data compiled by Bloomberg. The preliminary reading on Shanghai was published in January and Hong Kong’s release came last week.
The figures highlight 30 years of free-market policies that have spurred China to become the world’s third-largest economy and its No 1 exporter. Shanghai’s rise may fan concern in Hong Kong that the mainland city will regain its position as China’s dominant financial centre, after surpassing the former British colony as the nation’s biggest port and stock-market operator.
‘Hong Kong’s role as the bridge linking China and the West is diminishing due to the further opening up of China,’ said Hubert Tse, 36, a partner at law firm Boss & Young in Shanghai, who moved to the city from Hong Kong in 2003. ‘I’m witnessing history as China continues to power ahead.’
Bloomberg data giving US dollar comparisons for the cities’ economies back to 1981 showed Hong Kong previously leading Shanghai. David Cohen, an economist at Action Economics in Singapore, said ‘based on those nominal figures, converted at the prevailing rates, it would appear that the Shanghai economy is slightly larger’.
At the same time, China’s data may have less credibility. Jian Chang, a Hong Kong-based economist at Barclays Capital Asia Ltd, said there are ‘always doubts and questions’, because provincial numbers fail to tally with national figures.
Both cities have benefited from China’s opening up after then leader Deng Xiaoping began unfettering the Communist Party’s hold on the economy in 1978, following decades of self- imposed isolation under Mao Zedong, the founder of the People’s Republic of China.
Mr. Tse, a Hong Kong native, is wagering that Shanghai, the birthplace of HSBC Holdings plc and American International Group Inc, will regain its prewar role as China’s financial capital. HSBC was co-founded in Hong Kong.
Shanghai’s rise is ‘not a threat’, Hong Kong Chief Executive Donald Tsang told reporters at a briefing in Beijing yesterday, adding that the cities can find ‘new opportunities for cooperation’.
Mr. Tsang said Chinese Vice-Premier Wang Qishan told him on Thursday that Hong Kong’s position as an international financial centre can’t be replaced for reasons including its market and legal systems and talents.
‘Shanghai has a population of around 19 million people, which is almost three times that of Hong Kong, and a fast-growing economy, so it is not surprising’ that the mainland city’s GDP is now larger, Hong Kong government economist Helen Chan said on Thursday.
Hong Kong trounces Shanghai on output per person. The most recent per-capita GDP figures, for 2008, show Hong Kong with US$30,977 and Shanghai at US$10,713. -- Bloomberg
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