According to the most recent Global Financial Centers Index (GFCI) published on September 24, Hong Kong has regained its position because the leading financial center in Asia. This achievement means Hong Kong has overtaken Singapore for the primary time in two years.
Globally, Hong Kong ranked third, just behind New York and London, and Singapore ranked fourth. The study also noted changes within the rankings of other cities – Dublin, Chicago and Dubai saw an upward trend, while Shanghai, Beijing and Geneva saw declines.
The index is a joint effort by Z/Yen Partners and the China Development Institute, rating 121 financial centers all over the world. The data and findings utilized in the index come from a web-based survey of hundreds of monetary services industry professionals. The GFCI, published twice a yr since 2007, provides the most recent information on the performance of worldwide financial centers.
In the September 2022 survey, Hong Kong dropped in rating, losing its position as Asia’s largest financial center to Singapore. This change was largely attributed to Singapore’s faster easing of travel restrictions in April this yr in comparison with Hong Kong, which only reopened its borders in January 2023.
The news was welcomed by Hong Kong businesses, especially the financial sector, which has come under significant pressure as a consequence of the pandemic. A recovery can also be expected within the weak real estate market. The Hong Kong government hopes that various stimulus policies, including rate of interest cuts, will boost economic growth.
Seven cities within the Asia-Pacific region were among the many top twenty global financial centers. While the region’s overall rankings remained relatively stable, the world’s average rate dropped by 0.56%. The exceptions were Sydney, Nanjing and Tianjin, which saw probably the most drastic declines, each falling by greater than 10 points.
Meanwhile, on this study, Kuala Lumpur emerged because the star of Asia. As the one center within the Asia-Pacific region, it has climbed over 10 rankings and currently ranks 59th on the earth. Kuala Lumpur also showed noteworthy performance with a 13-point increase to succeed in 680.
Hong Kong and Singapore also saw increases, although smaller than Kuala Lumpur, by eight and five points respectively, with final scores of 749 and 743.
The aspects within the GFCI model are divided into five key competitiveness areas: Business Environment, Human Resources, Infrastructure, Financial Sector Development and Reputation Quality. New York leads in all areas, followed by Singapore and London.
Singapore is the one city to look in the highest rankings in all of those categories. The city-state was ranked second on the earth for infrastructure, financial sector development and reputational quality, and fourth for business environment, reflecting high standards in all these features.
