Gold Mountain

The Chinese use a term: "gold mountain" to describe a place where people go to make it rich before returning to their village.

It used to be that the Chinese had to venture abroad to find a gold mountain, now it looks like the gold mountain, at least in the financial world, is Shanghai. Check out the 7th Global Financial Centres Index: http://www.cityoflondon.gov.uk/Corporation/LGNL_Services/Business/Business_support_and_advice/Economic_information_and_analysis/Research_publications/

Shanghai is one of those very interesting cities in the world. An eclectic blend of ancient China, 19th century Europe, art deco 1940s, communist bland, communist extravagance, modern glass and steel towers with tasteless/spooky neon lighting that the Chinese love in their night skylines and daring architecture (think Beijing Olympic buildings). You now have new BMWs next to the 1970s Volkswagen Foxes. Modern art galleries next to Chinese erhu shops. Although Shanghai ranks below Shenzhen, the former is the platform to the West and the latter is the internal financial engine as I see it. Once known as the Paris of the orient, Shanghai is becoming the New York of the orient as far as finances go.

While still behind overall Asian leaders Hong Kong and Singapore, look at "Table 9
Centres Where New Offices will be Opened" to see where the future lies and Shanghai tops the list, followed by Hong Kong. Singapore sits 5th but with only half the number that Hong Kong has.

Among the things that surprise me is the ascension/strength of other PRC cities like Shenzhen and Beijing. Coupled with the expansion of Seoul, as I noted in my blog about the future of Singapore, the world of finances in the near future is North Asia.

It's hard to characterize mainland Chinese business people. It's a blend of high technical competence, brute force, corruption, stubbornness, under-handedness, ingenuity, hard work, perseverance, pettiness and hunger. They may dress in Armani and adorn themselves with Louis Vuitton then squat on the street. They may not speak a word in a meeting then spout out facts and figures like android with a 1TB hard drive of memory. They may haggle over a dollar then overpay in some other area. They go silent for days then send 10 people over to ask you a thousand questions. They drink like a fish then put in 20 hours in the office. They give you a limp hand shake then slap you in the back hard enough to almost bowl you over. Whatever it is, it seems to be working. Embrace it or you will be left behind. Under-estimate them and you will be rolled over by them.