Prior to the arrival of Shanghainese businessmen, the economy of Hong Kong revolved heavily around its status as an international
entrepôt. This changed with both the arrival of mainland Chinese capitalists, as well as the outbreak of the
Korean War. Among the ethnic Chinese, the Shanghainese initially showed much less enthusiasm for establishing links with the local Cantonese than with the foreign expatriates establishment. They were favored first by the British as business partners and later the mainland China CPC. While many Shanghainese in Hong Kong had been successful industrialists prior to resettlement, they lost most of their fortunes after fleeing the mainland. A notable exception was the Ningbo native and shipping magnate
Yue-Kong Pao, who managed to remit much of his family's wealth to Hong Kong before this became impossible after the communist takeover of Shanghai. Afterwards in Hong Kong, many Shanghainese people rebuilt their fortunes in textiles and clothing as well as other light industries like toy and plastics manufacturing. While these cotton mill owners tended to promote among relatives and kinsmen, much to the dismay of their Cantonese laborers, many Shanghainese dismissed the idea that there was nepotism at play. Goodstat writes that although Shanghainese did have a significant impact on the economy of Hong Kong, their economic influence would be greatly exaggerated to "legendary" proportions, as this was a myth propagated by the British in later years. Shanghainese people were more educated than the Cantonese population in Hong Kong at the time. Around 7% of Shanghainese in Hong Kong had attended university, compared to 2% of Cantonese speakers. However a quarter of Shanghainese had received no schooling at all, and Shanghainese were less than 10% of Hong Kong's university graduates in the early post-World War II period. Shanghainese people also came to play a significant role in commercial and financial links between mainland China and Hong Kong. The major mainland Chinese commercial presence in Hong Kong up to the 1980s comprised the state-owned banks; a high proportion of their upper management were of Shanghai origin. As of the 1990s, it is said that many Shanghainese-owned banking firms would promote among people of Shanghainese descent. The Shanghainese did not immediately re-invest in the Mainland after
reform and opening up in the 1970s, preferring to re-acquire old properties confiscated by the Communist Party. Shanghainese people had considerable influence on the entertainment industry as well. The Sino-Japanese war and subsequent
Battle of Shanghai brought and exodus of filmmakers to Hong Kong, as did the other wave with the communist takeover of the mainland. Ningbo natives
Run Run Shaw and his brothers moved their media company from Shanghai to Hong Kong during the Sino-Japanese War and would later found prominent television channel
TVB. Several of the founders and prominent shareholders of Suntec Investment Private Limited, a premier vehicle for Hong Kong investment in Singapore, are of Shanghainese descent. Founded in 1977, this corporation is behind real estate developments like
Suntec City, through its subsidiary Suntec Real Estate Investment Trust.
Cooperative Strategies - Asian Pacific Perspectives (1997) by Beamish and Killing use it as a case study for illustrating the important of
guanxi, specifically personal friendships and regional ancestral network relationships in Chinese business culture. ==Culture==