The Future of Asian Financial Centres: Challenges and Opportunities for the
City of London is published by the City of London. The authors of this report
are Research Republic.

This report is intended as a basis for discussion only. Whilst every effort has
been made to ensure the accuracy and completeness of the material in this
report, the authors, Research Republic, and the City of London, give no
warranty in that regard and accept no liability for any loss or damage
incurred through the use of, or reliance upon, this report or the information
contained herein.
Foreword

Executive Summary……………………………………………….. 3  

1.  Introduction……………………………………………………… 9
   
1.1  Economics and Politics among Geographies and Histories…………... 9
1.2  Aims of the Study………………………………………………………………. 9
1.3 Methodology…………………………………………………………………… 10
1.4 Structure…………………………………………………………………………. 11

2. The Context of Asian Financial Centres.............................. 13

2.1  Regional Overview ....................................................................................... 13
2.2  Overview of Singapore ................................................................................ 17
2.3  Overview of Hong Kong SAR....................................................................... 19
2.4  Overview of Tokyo  ....................................................................................... 21
3. Financial Activity in Asian Financial Centres ..................... 25

3.1  Asian Financial Centres in a regional and global context .................... 25
3.2 Singapore ...................................................................................................... 28
3.3 Tokyo .............................................................................................................. 35
3.4  Hong Kong SAR ............................................................................................. 40

4. The Geo-Politics (and geo-economics) of Asian Financial
Centres ....................................................................................... 46

4.1  Convertibility of the Indian Rupee ............................................................. 47
4.2  Sino-Japanese Relations.............................................................................. 49
4.3  Systemic Risk................................................................................................... 53
4.4  Trade Imbalances and the Pegged Remninbi ........................................ 56
4.5  Deepening Debt Markets in Asia ............................................................... 59

5. The Competitiveness of Asian Financial Centres............... 63

5.1   Regulation  ..................................................................................................... 63
5.2   Skills   ................................................................................................................ 73
5.3   Taxation .......................................................................................................... 80
5.4   Competitiveness: Summary of Key Insights .............................................. 85

6. The Future of Asian Financial Centres ................................. 87

6.1 Expert Perceptions of respective AFCs ........................................................... 87
6.2 Implications for London................................................................................. 94

7. Conclusion..........................................................................98

8. List of Abbreviations ...........................................................104

9. Bibliography........................................................................106

10. Appendices ......................................................................108

10.1   Thematic Case Studies ................................................................................ 108