Chapter 4 3. Financial Metropolis

Among Chinese writers, Chen Danyan, who is known as the "seeker of Shanghai's memory" and "explainer of Shanghai-style culture", commented: "Shanghai is increasingly becoming an American-style global city, and it is restoring its former economic city's worship of money. Tradition. That's what I don't like." In fact, whether the individual wants to or not.Officially approved by the State Council in 2009, Shanghai's urban development goal of becoming an international financial center in 2020 was confirmed. This city will be inseparable from capital and finance.However, what it means for Shanghai to become an international financial center for the city and its people is something we have to consider.

First, we must realize that "money has its limits. There are cities that lack the inner mechanisms of success, and in these places, money cannot buy the inner mechanisms that make a city successful. Furthermore, in some places, money In this case, money can only bring great harm. But, on the other hand, money can satisfy some needs, and in this sense, money can help Establish the inner success mechanism of the city. For these reasons, it can be said that funds are a powerful force, which can not only cause the decline of the city, but also promote the regeneration of the city. However, one thing must be understood, not whether the funds can be in place, Rather, how did it come about, what is its purpose, all these are important questions." ("The Death and Life of Great American Cities") Obviously, how to make money and spend it is a skill that Shanghai needs to learn continuously.

However, behind many seemingly beautiful construction achievements, there may already be many problems. Before 1949, Shanghai was the largest multi-functional economic center in China and the Chinese city with the most extensive and closest ties to the West. After 1949, in the first 30 years Shanghai was China's industrial center, commercial center, political center and cultural center besides Beijing. After 1978, especially after the development and opening up of Pudong in 1990, Shanghai came to the forefront of China's reform and opening up. However, it is precisely this large-scale development of Pudong that Edward Dennison and Guang Yu Ren, two authors of the book "Building Shanghai", consider "a huge missed opportunity".Jeff Dyer, the Shanghai correspondent of the British "Financial Times", expressed his support for this conclusion, "there is too much publicity to describe Shanghai as a new model city. His sharp criticism can be described as a bitter medicine."

"A corner of Pudong opposite the Bund was designated as a financial district, but market behavior dictated land allocation in the rest of Pudong: a lot of land was sold cheaply to the highest bidder, and the proceeds made Shanghai 's fiscal 'purse' is bulging." "The result is a collection of avant-garde, majestic high-rise buildings. They are impressive from a distance, but they are isolated on different plots and have no connection with each other. The frame is excellent, but there are some careless details that can have long-term impact. Take a walk around this financial district and you may find that there are few pedestrian crossings on the eight-lane main street. In a country where everything seems to have a plan, Pudong is surprisingly lacking in overall planning."

Excessive pursuit of speed and lack of experience may be the mistakes made by Shanghai. Currently, the recognized global international financial centers are London and New York.In addition, there are many regional international financial centers in the world, such as Frankfurt, Zurich, Paris in Europe, Hong Kong, Singapore and Tokyo in Asia. In the history of human civilization, the emergence of such a thing as "finance" is a miracle, and the miracle of miracles is that "finance" has already dominated the entire world.With just a short line of Wall Street, its influence will not be weaker than that of the White House in the United States. In order to strive for the position of "financial center", many cities have deliberately operated for decades or even hundreds of years ("Urban War").

Shanghai has a long-term goal of building an international financial center and vows to compete with New York.Tu Guangshao, member of the Standing Committee of the Shanghai Municipal Party Committee and deputy mayor, inadvertently revealed the truth at a business meeting in June 2009. He specifically analyzed the gap between Shanghai and New York, an international financial center. No words.Later, Tu Guangshao met with the visiting Mayor of the City of London to exchange experience in developing an international financial center. On July 8, 2010, the world's first "Xinhua-Dow Jones International Financial Center Development Index" report highlighting development capabilities was released in Shanghai.Among the 45 selected international financial center cities, China's Hong Kong, Shanghai, Beijing and Shenzhen are all in the prosperous stage of financial center growth and development.Among them, Shanghai ranked eighth with a comprehensive score of 63.8 (New York, London and Tokyo ranked the top three), but in the sub-item of "growth and development", Shanghai undisputedly topped the list with a score of 87.4.

In the post-crisis era, financial centers of emerging economies represented by Shanghai have performed impressively.But in addition to "growth and development", Shanghai's backwardness in terms of financial market, service level and comprehensive environment also reminds the public that the distance from Lujiazui to Wall Street is far from being as close as the report ranking reflects. Tu Guangshao also made no secret of the gap between Shanghai and New York: First, the construction of the rule of law in Shanghai is not good.Tu Guangshao explained: We are now going to build an international financial center, and there is a gap between us and the international legal system of taxation and credit.Second, the degree of internationalization is not enough.Tu Guangshao believes that Shanghai is at best a city with a little more financial agglomeration, and it is far from being an international and financial center.Third, the degree of marketization is not enough.Tu Guangshao pointed out that in the construction process of Shanghai, how to play the role of the main body and how to innovate and develop the main body have not been considered enough, especially in Shanghai, which is more administratively colored.Fourth, there is a shortage of financial talents in Shanghai.Shanghai's financial talents are not of the same order of magnitude as London and New York.5. There are still big deficiencies in the financial and credit environment.

However, while Shanghai is looking forward to the future with great interest, some people have raised objections to this urban development goal.Kuai Zheyuan, director of the Beijing Hong Kong and Macau Strategy and Development Research Center, questioned: Is it necessary for China to build two international financial centers? (The other refers to Hong Kong) His conclusion: no need. "Even in 2020, there is no need to build two international financial centers."His main reasons are: First of all, judging from the history and reality of the world's financial development, there are no two international financial centers of comparable size in any developed country.Both the global international financial center and the regional international financial center are formed by history, and they are not built by the government at will, nor by propaganda, nor are they self-proclaimed.At the same time, he cited Germany, which has fallen into the chaotic state of eight international financial centers competing side by side, which has not changed until now.

Second, from the perspective of China's own and the development trend of the world, it is not necessary for China to build two international financial centers of "win-win cooperation".Fundamentally speaking, this is determined by China's socialist market economy development model.This semi-planned or highly planned market economy development model is destined to be very difficult for Shanghai to build an international financial center to truly realize marketization and internationalization, and it is also difficult to gain the recognition of Western countries. Third, from the strategic considerations of co-construction of Hong Kong International Financial Center and Shanghai International Financial Center, it is not completely necessary to build Shanghai International Financial Center at present.Kuai Zheyuan believes that the central government hastened to build Shanghai into an international financial capital, which may be due to the consideration that the market economy is surnamed "capital" and "social".And he feels that Hong Kong's economy and Hong Kong's international financial center are already an important part of China's economy, China's financial industry and financial market, and there is no need to start a new one for this.

In fact, it is really difficult for non-professionals to understand the significance and necessity of building an international financial center, and the price that the city and its people have to pay for it.So, let's look at it from another angle.If Shanghai gets its wish in 2020 and becomes an international financial capital on a par with New York and London, what will happen to us? At this time, I have to mention another big "urban disease" besides "traffic, poverty and pollution" that has attracted enough attention - finance, a super city disease. Take New York, London and our most familiar Hong Kong as examples. "In line with their status in the financial world, after the subprime mortgage crisis in 2008, New York was the first to bear the brunt of the financial crisis, followed by London as the flag bearer of the financial crisis, and Hong Kong danced in response to the financial crisis The hardest hit place of the crisis. To this day, although the United States frantically printing money to protect itself, New York is still physically and mentally exhausted; and the former Prime Minister Brown, who was a former British finance minister, is also racking his brains, but London is still marching everywhere; what is worse is Hong Kong, a nightmare Haunting".

In other words, once Shanghai relies more on "financial" development, the resulting financial crisis will also cause greater and far-reaching harm to the city and its residents, and it is inevitable. "Not only these three major financial centers (New York, London and Hong Kong), but also many other cities, whether it is the government-led Asian city model or the market-led European and American city model, the urbanization process has not got rid of financial capital. The financial crisis brought about by extreme inflation (such as the Great Depression in the United States in the 1930s, the currency crisis in developed countries in Europe in the early 1990s, and the crisis in emerging markets in the later period, etc.).” "To solve the 'urban disease' of 'finance', the effect can be achieved simply by relying on the regulatory authorities-in fact, financial regulation has taken a big step forward after each crisis-it also requires people to raise their awareness of financial capital level, and carefully balance the conflict between financial innovation and financial regulation; it is even more necessary to give full play to the power of scientific and technological progress and find a way to solve the problem of excessive expansion of financial capital. However, to our disappointment, this 'urban disease' not only cannot be cured , and with every few years the disease flares up and grows more ferocious" (Urban Warfare). Shanghai is obviously a city that advocates material comfort, no matter in the past, present or future.Therefore, Guo Jingming, the "literary superman" who is also unabashed about his money worship, can enjoy himself in this city. He said that his "Little Times" is a work "tribute to Shanghai", which is more contemporary and mainly reflects The living conditions of young people in the city of Shanghai today.But Han Han ridiculed this novel: "It's all about LV and Hermès. I think it's just for readers in those county-level cities to popularize the brand. He (referring to Guo Jingming) said he wanted to write about an entire era, and I think it's the 'Hang Lung Era' 'Bar." We don't discuss whether the novel reflects the times, but Guo Jingming and his writing at least reflect Shanghai's preferences.What kind of person is easier to live in Shanghai and easier to be accepted by this city is fully revealed by "Guo Fuhao". The characteristic of Shanghai's "Magic City" is not only to provide sensuality, but also to ask for it.The more golden and alluring she is, the more expensive you will have to pay to be near her.To Shanghai, that's fair enough, it's a deal.If you can afford it, stay; if you don’t have the money or think it’s too expensive, leave.Fair, but also cruel.