Global finance

Global finance is undergoing profound changes, which have repercussions for non-financial corporations and governments alike. This entry explains how changing practices in the financial sphere, for instance the rise of index investing and how states are managing their surpluses, have caused the emergence of various new influential actors – both private and state-owned ones. As a result, the geographies of global finance are shifting, which might entail new logics and new power dynamics, such as the rise of private asset managers of unprecedented size, the growth of large sovereign wealth funds, and the formation of state-permeated Chinese financial markets. Finally, this entry discusses how the emerging age of geopolitics may impact global finance and whether this could lead to a further reconfiguration of the government-business relationship.