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New York kept the top spot in the latest Global Financial Centres Index (GFCI), with London clinging on to second place in the face of competition from Shanghai and other Asian centers, Reuters reports.
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Hong Kong ranked fourth. Hong Kong's rating dropped 2 points to 741.
Commenting on Heritage Foundation's decision to remove Hong Kong from its economic freedom ranking, Mike Wardle, director and the head of indices for index compiler, Z/Yen, said that will affect some quantitative indicators, but Hong Kong's open and free system of economy and law is still seen very attractive to people wanting to bring in investment into financial centers.
"The individual change in terms of the Heritage Foundation's scoring may not have a great difference but the overall position is that financial centers that have more freedom in terms of law and government effectiveness are likely to perform well over the long term," he said.
The index, compiled by the Z/Yen Group, a London-based think tank, and the China Development Institute, looks at 143 yardsticks provided by outside parties such as the World Bank, The Economist Intelligence Unit, the OECD and United Nations.
Based on 65,507 assessments of financial centres provided by 10,774 respondents to the GFCI online questionnaire, New York held on to the top stop with 764 points, while London dropped 23 points to 743, just one point ahead of Shanghai.
The next five spots were filled by Asian financial centres, with two European centres making up the rear in the top 10.
“A four point rise would place Singapore second only to New York. It’s tight at the top, and no time for complacency,” said Michael Mainelli, executive chairman of Z/Yen.
Asian financial centres make up six of the top 10, with three from Europe, including Frankfurt and Zurich.
Frankfurt replaced San Francisco in the top 10, “perhaps benefiting from the exit of the UK from the European Union,” GFCI said.
