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Shanghai

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As a major administrative, shipping and trading city, Shanghai grew in importance in the 19th century due to trade and recognition of its favourable port location and economic potential. The city was one of five treaty ports forced open to foreign trade following the British victory over China in the First Opium War. The subsequent 1842 Treaty of Nanking and 1844 Treaty of Whampoa allowed the establishment of the Shanghai International Settlement and the French Concession. The city then flourished as a centre of commerce between China and other parts of the world (predominantly the Occident), and became the primary financial hub of the Asia-Pacific region in the 1930s. However, with the Communist Party takeover of the mainland in 1949, trade was limited to other socialist countries, and the city's global influence declined. In the 1990s, the economic reforms introduced by Deng Xiaoping resulted in an intense re-development of the city, aiding the return of finance and foreign investment to the city. It has since re-emerged as a hub for international trade and finance; it is the home of the Shanghai Stock Exchange, one of the world's largest by market capitalization.

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