In the newest Global Financial Centres Index Singapore has overtaken Hong Kong as Asia's leading hub. London remains number one, but new entrants make the competition tougher, especially in Asia.
The Global Financial Centres Index (GFCI 19), established by London based Y/Zen Group uses 24,495 financial centre assessments completed by 2,520 financial services professionals. Since 2007 well over 125,000 assessments from over 10,000 respondents have been used to build the index.
London remains just ahead of New York to retain its leading position. Both cities gained four points in the ratings and London remains eight points ahead of New York. A number of respondents to the questionnaire have commented that the uncertainty surrounding the possible exit of Britain from the EU is having a negative impact on London’s competitiveness.
Seoul and Sydney Falling
In Asia Singapore has overtaken Hong Kong to become the third ranked centre by just two points. Tokyo, in fifth place, is 72 points behind London. However, seven of the top ten Asia-Pacific centres witnessed a fall in their ratings.
Singapore, Tokyo and Beijing rose slightly in Global Financial Centres Index (GFCI 19). Of the top ten centres in this region, Seoul and Sydney showed the largest falls.
The Chinese coastal city of Qingdao joined the GFCI for the first time in 79th place. Qingdao is a major seaport, naval base, and industrial centre but is increasing its influence as a financial hub.
Centre of Gravity Shift
The historical dominance of the leading centres in Western Europe and North America has eroded over time. The mean rating of the top five centres in these regions is now lower than the mean of the top five centres in the Asia-Pacific region. The top centres in other regions, especially in Latin America and Eastern Europe, are also closing the gap.
The top financial centres of the world are all well developed, sophisticated and cosmopolitan cities in their own right. Successful people are attracted to successful cities and it is perhaps no surprise that these centres are ranked so high by financial services professionals.
