China, ahead of the US and Europe, has heralded signs of a recovery from the global financial crisis on the back of the central government's 4 trillion yuan stimulus package.

In March the State Council sanctioned turning Shanghai into an international financial hub by the end of 2020.

"There's little doubt that Shanghai would emerge as an important global financial center within the next decade given that the Chinese economy will become No 1 or No 2 in the world and because of the growing global status of the yuan," said Hubert Tse, managing director and head of international business at law firm Yuan Tai.

A total of 29 percent of businessmen in Shanghai said there was "too much regulation affecting business", while 33 percent said "there's not enough regulation to protect business".

Challenges affecting Shanghai's claim as a global financial center include the timing of when the yuan will become fully convertible and whether (and how effectively) adequate laws and regulations and a regulatory regime would be put in place, Tse said.

Related

• HK to enhance competitiveness as global financial center
• Shanghai outlines steps to develop global financial center status
• Financial center in Shanghai to match status of economy, yuan
• Shanghai steps up legislative efforts for int'l financial center

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