The changing geographies of financial centres in China: The case of commercial banking

This paper discusses the geographies of commercial banking in China. To understand the changing geographies of financial centres, this paper uses an empirical approach to highlight the changing spatial distribution of banking to the existing collection of empirical descriptions, and by an investigation of its spatial concentration over the period between 2006 and 2014. The empirical analysis is based on branch and sub‐branch data, employment data, headquarters data, and banking assets data, all of which are available, allowing a systematic geographical analysis of commercial banking. The findings reveal the status of Beijing and Shanghai as primary banking centres, as well as a hierarchical network of domestic banking centres and a growing spatial concentration within China's banking system. More specifically, Beijing is the predominant banking centre, while Shanghai retains its status as a capital for foreign banking. The rise of provincial banking centres in addition to Beijing, Shanghai, and Shenzhen has contributed to the formation of a hierarchical network of banking centres at national level. Accordingly, the development of first‐ and second‐tier banking centres has led to an ascending geographical concentration within China's banking system.