The Formation of Regional Financial Center in China: Based on the City of Guangzhou

This paper sets up an Evaluation Index System of the regional financial center with variable selected from three dimensions: economic development, financial development degree and innovation environment support. The principal component analysis methodology is then used to evaluate competition of six cities including Guangzhou. According to the composite score, Guangzhou is ranked fourth, behind Beijing, Shanghai and Shenzhen. In addition, the SWOT analysis of Guangzhou regional financial center is adopted and two major problems are pointed out respectively, headquarter economy in low level and small financial scale. Finally, four recommendations to improve regional financial center of Guangzhou are put forward.