Ever since Shanghai announced in April 1990 its plan to develop the Pudong New Area, and its ambition to re-emerge as a major international financial, commercial and shipping centre by 2010, the traditional Tale of Two Cities about the rivalry, real or imagined, between Hong Kong and Singapore has gradually given way to a new one featuring Shanghai vs. Hong Kong. Shanghai's recent successful bid for the 2010 World Expo, in contrast to Hong Kong's failure to capture even the Asian Olympics, is regarded by many as pregnant with symbolic significance.
The paper was presented at the international conference on New Development in Chinese Finance: Shanghai as an Emerging International Financial Centre held in Shanghai on 13-14 September 2003. The conference was co-hosted by the University of Durham, UK, the East Asia Normal University, and the Shanghai Centre for International Finance, and sponsored by the Shanghai Futures Exchange.
Revised: December 2003