Singapore has overtaken Hong Kong to become the third ranked financial center by just two points. Tokyo, in fifth place, is 72 points behind London which remains the top financial center, according to the 19th Global Financial Centres Index (GFCI 19) which rates 86 financial centers.
"Whilst London and New York still lead the field, the next three centers are all Asian," says Mark Yeandle, Associate Director at the Z/Yen Group and the author of the GFCI. "Five of the top ten centers are now North American perhaps reflecting the surge in Fintech and blockchains.”
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 centers are ranked so high by financial services professionals.
Seven of the top ten Asia-Pacific centers saw a fall in their ratings. Singapore, Tokyo and Beijing rose slightly in the GFCI 19. Of the top ten centers in this region, Seoul and Sydney showed the largest falls.
London is still on top
London remains just ahead of New York to retain the number one position. Both cities gained four points in the ratings and London remains eight points ahead of New York.
"The GFCI is on a scale of 1,000 points and a lead of eight is fairly insignificant," says a statement from Z/Yen which published the report. "We continue to believe that the two centres are complimentary rather than purely competitive. A number of respondents to our questionnaire have commented that the uncertainty surrounding the possible exit of the UK from the EU is having a negative impact on London’s competitiveness at present."
Of the financial centers in the U.S., New York, Washington DC and Los Angeles rose in the ratings. The three leading Canadian centers fell in the ratings after strong rises in the past year. Toronto remains the leading Canadian center with Montreal in second and Vancouver in third.