London Leads Latest GFCI – But Asian Financial Centres Close the Gap

London Leads Latest GFCI – But Asian Financial Centres Close the Gap

It is no coincidence that the latest Global Financial Centres Index (GFCI), published by the Z/Yen Group and sponsored by the Qatar Financial Centre Authority, has been released in Shenzhen, China. All of the financial centres on the Chinese mainland have performed well since the previous report six months ago, and Z/Yen believes that despite recent economic problems in China, this is a sign that the Chinese centres are becoming more competitive.

The GFCI is published in March and September each year; this is the 18th in the series. Ever since the first report came out in March 2007, London and New York have vied for the top spot. A total of 98 financial centres are researched for the report; 84 are included in the final list, while the remaining 14 are considered “associate centres”, which may be included in the future if they receive sufficient assessments.

On this occasion, London comes out in top spot; but New York is so close behind that in effect the two centres are considered to be on a par. The GFCI is on a scale of 1,000 points, and London has risen by 12 points since the report in March, putting it eight points ahead of New York. But as anything below 20 points is considered “fairly insignificant”, Z/Yen not only rates these two leading financial centres as equals, but describes them as being, “complimentary rather than purely competitive”. The boost in London’s fortunes since the previous report is clearly related to the victory of the Conservative Party in the General Election in May.

But as a pointer for the longer term, Z/Yen considers it highly significant that the next four places in the Index are occupied by Asian financial centres, and hence the decision to launch the report in China: Hong Kong lies in third place, 33 points behind New York; then comes Singapore, followed by Tokyo and Seoul. Shanghai, Shenzhen and Beijing occupy strong places, being 21st, 23rd, and 29th, respectively. The authors expect further rises for the Chinese centres in the years to come.

The remainder of the Top Ten reflect recent stability. Zurich is in seventh place (so second in Europe); and the rest of the Top Ten are North American: Toronto, San Francisco and Washington DC. North American centres generally held their positions well.

Western Europe is also strong, with 23 out of 29 centres rising in the rankings, and Liechtenstein appearing on the list for the first time, in a very respectable 60th place. Eastern Europe and Central Asia are bracketed together; all centres there lie behind the leading nine centres in Western Europe. Warsaw is top of this group, in 38th place.

It is this group, though, which has witnessed the most significant decline by a single country: Russia. Despite great efforts in recent years to improve Moscow’s standing as an international financial centre, the Russian capital has fallen back from 75th to 78th; and St Petersburg has dropped from 78th to 81st. Clearly, the Ukraine crisis has had an effect. It will be no surprise that Kiev does not feature either in the main list or among the “associates”.

Should you wish to receive recommendations, ask questions or get in touch with our experts, please email us info@orcap.co.uk or call +44 (0) 207 725 6900

Most Recent News

UK Will Open New Business Immigration Routes

UK Will Open New Business Immigration Routes

UK Closes Immigration Route to Investors

UK Closes Immigration Route to Investors