There's been some discussion of the rise of London as a financial center. Some are convinced it is supplanting New York City as the money hub of the world. Leaving aside that debate, which city stands a good chance of being the New York City of 2020? Goldman Sachs (NYSE: GS) has issued a report suggesting that Shanghai may well emerge as a New York City-like financial center by then.

"As a financial centre, we expect Shanghai to develop more along the lines of the New York model--that is, primarily dedicated to its domestic market--rather than as a regional financial centre like London or Singapore," said the research report, as noted by Bloomberg. Shanghai currently accounts for 25 percent of the region's daily cash equity and futures turnover. "In many ways, we think Shanghai may partially emulate the development of Hong Kong during the 1980s and 1990s, when manufacturing was gradually replaced by higher value added services."

Of course a lot could happen between now and then. But it does look like the securities market--and local securities firms--are rapidly developing along the Western model. No doubt China is a looming power.

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