Shanghai is on track to becoming the world's largest financial centre in a decade, according to a new report. Shanghai will become increasingly important as China develops its stock, currency, bond and derivative markets. One key development will be launch of the Shanghai stock exchange's international board, which the report says should happen in the near future. That will allow foreign companies to raise funds by listing shares in China.
A debut could conceivably occur before the end of 2011. China's stock market has grown from $400bn (£250bn) in 2005 to $4tn in 2010 as more than 500 companies have gone public.
There was now room for sustained growth in debt and derivative markets, which are still in their infancy in China.
A key challenge would be liberalising China's currency, which is still tightly controlled. Although China has taken steps to internationalise its currency, there are still limits on the flows of money in and out of the country.
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