EAST IS EAST
September 29, 2009
Looking at the latest Global Financial Centres Index it is striking how Asian centres have risen in prominence. Most notable is the entry at no 5 in the world rankings of Shenzhen, not hitherto well known in the west as a financial centre. Shenzhen was the first Special Economic Zone established in China. Before the opening up of China to the world economy initiated by Deng Xiaoping in the early 1980s, it was the main crossing point to Hong Kong. My memory of it as it was in 1983, when I first passed through it en route to China, is of a militarised transit point over which a Cold War atmosphere hung heavy. The Gurkha Rifles were on one side and the People's Liberation Army were on the other.
All ancient history, now. The appearance of Shenzhen in these rankings, at such a level, simply confirms what we have all been telling one another for a long time: that markets are shifting East. Edinburgh has dropped 7 places in the overall world rankings to 27th (7th in Europe) and Glasgow sits at 49th. Edinburgh is 15th in the world for asset management. Not great to see our centres dropping down the index but, given that the risers are predominantly Asian, it reflects the changing world order. The challenge for us is to take advantage of that change.
Owen
