There was much furore last year when the Global Financial Centres Index (GFCI) ranked New York as the world’s leading financial centre, tipping London off its proud perch. In this year’s report from City of London commercial think-tank Z/Yen, New York maintains the title and London again comes second, this time with only one measly point in it.
Perhaps the more interesting news though, is that Asian cities are fast closing in on the perennially robust western hotspots, while Central Asian and Eastern European hubs that gained ground in 2014 are suffering this year from geo-political tension, particularly the fallout from Ukraine.
Business and financial news websites adopted various opinions as to what the key take-home message from this year’s index is.
Top marks for London
Money Marketing took a head-on approach, focusing on the close call between New York and London, with the former ultimately winning on aggregate on the following scores: business environment, human capital and reputational advantage.
The GFCI's top four global financial centres:
1. New York
2. London
3. Hong Kong
4. Singapore
The article pointed out that of the top four – New York, London, Hong Kong and Singapore – only London fell outside the top ten for reputational advantage.
The UK capital’s second-place is, however, buoyed by its top marks for financial sector development and infrastructure.
Money marketing article
Asia closes the gapDigging a little deeper, City A.M.’s Kasmira Jefford chose to focus on the narrowing gap between New York and London and the big Asian metropolises of Hong Kong – number three on the list – Seoul and Singapore.
The lesser-known Asian financial hubs also piqued Jefford’s interest, with a rundown that would rival the Eurovision Song Contest: “Busan in [South] Korea was the biggest riser after gaining 11 points, followed by Shenzhen in China and Taipei in Taiwan, each gaining nine points.” And back to you in the studio.
City A.M. piece
Middle Eastern promise
Rather helpfully, Business Insider Australia’s offering comprised a countdown, complete with striking pictures, of the top 20 cities in the GFCI. Number 20 is Qatar’s Doha, in case you were wondering.
Riyadh, Saudi Arabia makes an interesting entry at number 14, “climbing seven places from last year as the capital prepares to allow foreigners to invest in stocks there.” Perhaps it will be one to watch in the coming years.
The article’s countdown also referred to Zurich “making the grade as the second highest-ranked European city on the list,” while it pointed out that “China’s rapid growth [is] cooling,” reflected in Shanghai solely representing China in the top 20.
Business Insider Australia countdown
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