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How Chinese Financial Centers Integrate into Global Financial Center Networks: An Empirical Study Based on Overseas Expansion of Chinese Financial Service Firms

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Abstract

The increasing globalization of the Chinese economy has been enabled by both Chinese financial institutions operating globally as well as international firms operating within China. In geographical terms, this has been organized through a number of strategic cities serving as gateways for the exchange of financial functions, products and practices between China and the global economy. Drawing on location data of financial service firms in China listed on stock exchanges in Shenzhen, Shanghai and Hong Kong, this paper shows that Chinese financial firms are expanding globally and how Chinese financial centers are positioned and connected in the urban networks shaped by these financial service firms. It is found that Hong Kong, China, holds strategic positions in the integration of Chinese cities into global financial center networks, and that establishing a foothold in global financial centers such as New York and London has been a priority for Chinese financial institutions. The increasing capital flows directed by Chinese financial institutions suggests a shifting global financial geography, with numerous Chinese cities playing increasingly important roles within global financial center networks.

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Authors and Affiliations

  1. School of Geography, Faculty of Geographical Science, Beijing Normal University, Beijing, 100875, China

    Fenghua Pan & Ziyun He

  2. School of Geography, Planning and Environmental Management, University of Queensland, Queensland, 4072, Australia

    Thomas Sigler

  3. School of Earth and Environment, University of Western Australia, Crawley, WA, 6009, Australia

    Kirsten Martinus

  4. Department of Geography, Ghent University, Gent, B9000, Belgium

    Ben Derudder

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  1. Fenghua Pan
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Correspondence to Fenghua Pan.

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Foundation item: Under the auspices of the National Natural Science Foundation of China (No. 41201107), the Fundamental Research Funds for the Central Universities (No. 2015KJJCB30)

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Pan, F., He, Z., Sigler, T. et al. How Chinese Financial Centers Integrate into Global Financial Center Networks: An Empirical Study Based on Overseas Expansion of Chinese Financial Service Firms. Chin. Geogr. Sci. 28, 217–230 (2018). https://doi.org/10.1007/s11769-017-0913-7

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