Why is Shanghai a financial center?

The reasons are geographical advantages, financial market size, financial market size and so on.

1. Geographical advantages: Shanghai is located in the east of China, at the mouth of the Yangtze River, bordering the East China Sea in the east and Jiangsu and Zhejiang in the north. It is one of the four municipalities directly under the Central Government of China. Shanghai has a solid economic foundation, a large population and a high population density, and belongs to a megacity. All these make Shanghai have a convenient geographical advantage in financial activities.

2. Scale of financial market: Shanghai already has relatively complete core functions as an international financial center, established its position as a center for RMB financial asset allocation and risk management, and became an important hub for promoting RMB internationalization, forming a financial service system suitable for serving the real economy and supporting high-quality economic development. In 2020, Shanghai's financial market turnover exceeded 2,200 trillion yuan, ranking the top three in the world.

3. Policy support: As the financial center of China, Shanghai has received strong support from the national level. For example, Shanghai has put forward the construction goal of "five centers", which has been upgraded to a national strategy, namely, an international economic center, an international financial center, an international trade center, an international shipping center and an international scientific and technological innovation center.