Shanghai was one of the biggest beneficiaries of the central government’s policies from 1949 to 1978

Due to poor industrial and agricultural policies, Shanghai’s GDP grew much faster than other provinces from 1949 to 1978. In 1952 The national GDP was 67.9 billion yuan, and Shanghai's GDP was 3.586 billion yuan, accounting for 1/20 of the country at that time. However, by 1976, Shanghai's GDP accounted for 1/6 of the country, and the growth rate far exceeded the national average.

1984- In 1992, Shanghai was among the first batch of cities opened to the outside world in China

In 1984, 14 cities including Dalian, Qinhuangdao, Tianjin, Yantai, Qingdao, Lianyungang, Nantong, Shanghai, Ningbo, Wenzhou, Fuzhou, Guangzhou, Zhanjiang, and Beihai were included. The coastal city was approved by the State Council as one of the first cities in the country to open to the outside world. Due to the lack of entrepreneurial spirit among state-owned employees in Shanghai, Shanghai developed very slowly during this period despite the opening policy.

Shanghai was the biggest beneficiary of China’s policies from 1992 to 2006 (Pudong development)

It can be seen that from 1949 to 2006, Shanghai has been the biggest beneficiary of the central government’s policies.

The following are 6 examples of Shanghai’s benefits from the central government in recent years.

1. The government bond trading center in Wuhan was also moved to Shanghai. Previously, Wuhan’s government bond trading accounted for 2/3 of the country’s total.

2. In order to support the construction of the Shanghai International Navigation Center, an administrative order uprooted the Guangzhou Ocean Shipping Company, which had worked hard to develop dozens of container ships in Guangzhou, and moved it to Shanghai. Guangyuan is now completely unable to develop. Guangzhou Ocean Company is a very profitable enterprise that Guangzhou people have worked hard to develop for decades.

3. In order to support the construction of Shanghai International Financial Center, the Diamond Exchange is located in Shanghai. Panyu is the largest diamond processing base in the country. Together with nearby Dongguan, Shenzhen takes over almost all the diamond processing industry in the country. From June 1, 2002, the country Diamonds are imported and reported on the Shanghai Diamond Exchange. Guangdong companies import goods from Shanghai and then transport them back to Guangdong, which greatly increases production costs. Why not put the diamond exchange on the Shenzhen Stock Exchange? Guangdong concentrates most of the country’s diamonds. Processing industry.

4. China's crude oil trading is on the Shanghai Stock Exchange instead of the Shenzhen Stock Exchange, but several of the country's most important oil storage warehouses are in Guangdong. A lot of China's crude oil is imported from Zhanjiang Port. Zhanjiang is China's distance from the Persian Gulf, Indonesia, Malaysia, etc. The nearest deep-water port is China's largest oil source. During several diesel shortages from 2004 to this year, a large number of oil trucks from Hunan, Hubei, Jiangxi, Guizhou and other provinces went south to Guangdong to snap up diesel. This is enough to prove that Guangdong's oil storage How big is it, and Guangdong is also the largest oil consumer in the country.

5. Shenzhen is the country's largest gold and platinum processing base. Together with nearby Dongguan, Guangzhou, and Huizhou, it controls almost all of the country's gold and platinum jewelry processing industries. However, the country also lists the gold exchange on the Shanghai Stock Exchange instead of the Shenzhen Stock Exchange.

6. The issuance of new shares on the Shenzhen Stock Exchange was suspended for X years.

Other facts about the central bank’s support for the construction of the Shanghai International Financial Center (not available in other cities)

The Second Headquarters of the Central Bank

China’s capital lending market,

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Financial Derivatives Exchange

China Foreign Exchange Trading Center,

Shanghai Equity Exchange,

National Gold Reserve Operation Center

National Foreign Exchange Reserve Operation Center

Credit Information System Center of the Central Bank Head Office

Check Throttling Data Processing Center

China Anti-Money Laundering Fund Monitoring Center

Under the call of the central government: the four state-owned commercial banks of Industry, Agriculture, China and Construction Bank and Bank of Communications have settled in Shanghai. Bank of Communications, the four major banks' credit cards, capital operations, data centers, Pacific Insurance, and the second headquarters of Ping An Insurance are also located in Shanghai.

Because the policy has artificially designated the financial center, many other domestic cities do not even have the qualifications to enter this area. Shanghai has obtained the "title" of "financial center" without going through domestic competition, at least for a few Advantages:

1. Huge financial transaction taxes are imposed every year, and many of these transactions are actually transactions in other parts of the country. However, because Shanghai is a trading center for many financial products, its handling fees and taxes are Put it in your pocket.

2. Because it has become a "financial center", it has attracted many foreign financial institutions to set up their Chinese headquarters, which not only puts more tax revenue into their own pockets, but also creates a series of demands for real estate, labor, etc.

3 can attract more foreign companies. For example, if a Belgian company wants to invest in China, if other conditions are the same, it will give priority to investing in areas where local banks are located, because local banks tend to have a better understanding of its credit and it is relatively easy to get loans.

(The above 2 and 3 reasons have a far-reaching and greater impact than the first point)

What I want to explain is that many domestic Not only did cities lose the qualifications to compete in certain areas, they even lost the qualifications for market access in the first place. Don’t we practice a market economy? !

Looking at the development process of foreign financial centers, financial centers are formed due to the natural accumulation of large amounts of funds by market forces and the survival of the fittest in various places. They are not artificially designated by administrative forces like in our country. Why does China want artificially designated financial centers?