A report by British law firm Eversheds claiming that Shanghai could overtake London as a world financial center in 10 years has led to a predictable round of hand-wringing from the British press, including the Financial Times, the BBC and the Telegraph.

But not all of Asia is gloating. Missing altogether from Eversheds’ report is the city that’s most worried about losing ground to Shanghai: Hong Kong.

Obviously, such surveys are to be taken with a grain of salt; after all, over a tenth of Eversheds’ respondents predicted Dubai would emerge as the world’s preeminent financial center in decade’s time.

And Hong Kong, a special administrative region of China with a separate local government and legal system, has been booming recently. So far this year, its exchange is leading the world in initial public offerings, mostly on behalf of mainland Chinese companies. It remains the preferred regional base for global banks and, consequently, international law firms.

Still, Hong Kong has long had a complex about Shanghai, which was the region’s preeminent financial center before falling under communist rule in 1949. Now that that same communist government has embraced capitalism, fears abound that Shanghai will be promoted at Hong Kong’s expense.

That anxiety was reflected in a Reuters article last week, in which one Hong Kong banker fretted that his city would become a second city — a Boston or a Chicago to Shanghai’s New York.

via Will Shanghai Overtake Hong Kong as World Financial Center?.