But it has to work hard to outdo HK, survey shows
Shanghai still has a lot to learn if it is to one day take over from Hong Kong, but the northern city is a diligent student and is catching up fast, according to bosses in the two cities.
A survey of 209 high-ranking personnel working in multinational corporations in Hong Kong and Shanghai found that while Hong Kong in 2003-04 was still the most competitive and globalised of China's cities, Shanghai was rapidly narrowing the gap.
Asked to score Hong Kong and Shanghai on a number of factors to do with image, the business environment and the economy, the respondents gave Hong Kong an average rating of four out of five. Shanghai was rated 3.6.
The margin has decreased from 0.7 in 2002-03 and 0.8 in 2001-02.
According to a rough calculation by Chinese University of Hong Kong academic Linda Ng Fung-yee, if Shanghai's per capita income were to grow at 11.2 per cent and Hong Kong's at 3 per cent, it would take just 10 years for the city to surpass Hong Kong.