Hence, a widening of sovereign bond yield spreads, reflecting changes in perceived credit risks, does not necessarily signal a reduced degree of market integration. However, at the same time it cannot be excluded that some fragmentation may indeed have taken place during the crisis, reflecting different market liquidity conditions, as I previously explained.
In the early 1990s, Mr. Deng Xiaoping said that China had to depend on the development of Shanghai to enhance the international competitiveness of its financial industry. In his visit to Shanghai in July 2004, President Hu Jintao called for continued efforts to make Shanghai an international center for global economic, financial, trade and marine transportation activities.