In a significant development, Hong Kong has reclaimed its position as the leading financial hub in Asia, according to the latest Global Financial Centres Index (GFCI) released on September 24. This achievement marks the first time in two years that Hong Kong has surpassed Singapore.
Globally, Hong Kong secured third place, just behind New York and London, while Singapore followed in fourth. The survey also noted shifts in the rankings of other cities, with Dublin, Chicago, and Dubai experiencing an upward trend, while Shanghai, Beijing, and Geneva saw declines.
The index is a collaborative effort between Z/Yen Partners and the China Development Institute, assessing 121 financial centers worldwide. The data and findings used in the index are derived from an online survey involving thousands of financial services professionals. The GFCI, published twice a year since 2007, provides the latest insights into the performance of global financial centers.
In the September 2022 survey, Hong Kong’s ranking dropped, losing its position as Asia's top financial center to Singapore. This shift was largely attributed to Singapore's faster relaxation of travel restrictions in April of that year, compared to Hong Kong, which only reopened its borders in January 2023.
This news has been well-received by businesses in Hong Kong, especially the financial sector, which has been under significant pressure due to the pandemic. The sluggish property market is also expected to recover. The Hong Kong government hopes that various stimulus policies, including interest rate cuts, will boost economic growth.
Asia Pacific's Top Financial Hubs: KL Rises the Highest in Rankings
Seven cities in the Asia Pacific region made it to the top 20 global financial centers. Although the overall rankings in the region remained relatively stable, the average index for this area fell by 0.56%. Exceptions were Sydney, Nanjing, and Tianjin, which saw the most drastic declines, each dropping more than 10 points.
Meanwhile, Kuala Lumpur emerged as the star of Asia in this survey. It was the only center in the Asia-Pacific region to climb more than 10 ranks, now standing at 59th globally. Kuala Lumpur also showed notable performance with a 13-point increase, reaching a score of 680.
Hong Kong and Singapore also recorded increases, albeit smaller than Kuala Lumpur’s, by eight and five points respectively, with final scores of 749 and 743.
GFCI Model Competitiveness Factors
The factors in the GFCI model are divided into five key areas of competitiveness: Business Environment, Human Resources, Infrastructure, Financial Sector Development, and Reputational Quality. New York leads in all areas, followed by Singapore and London in second place.
Singapore is the only city that appears in the top rankings across all these categories. The city-state achieved second place globally in Infrastructure, Financial Sector Development, and Reputational Quality, and fourth place in Business Environment, reflecting high standards across these aspects.
