HK moves up a spot on financial indexFinance | Avery Chen 18 Mar 2021
Hong Kong ranked fourth in the latest Global Financial Centres Index, moving up from fifth in September last year, but still lags behind Shanghai, which retains the third spot.
The index was compiled by London-based think tank Z/Yen and Shenzhen-based China Development Institute, which researched 126 financial centers. The semi-annual survey was based on 65,507 assessments of financial centers provided by 10,774 respondents to online questionnaires.
New York topped the ranking again, while London clung on to second place, but their ratings fell from the last report. Singapore was ranked fifth.
The average rating of centers in the index dropped 3.5 points from September. Overall ratings have not recovered to the 2019 levels, which reflects the continuing uncertainty around international trade, the impact of the Covid-19 pandemic and local and geopolitical unrest, the report said.
Hong Kong's rating also dropped 2 points to 741. The city ranks fourth in terms of business environment, human capital, infrastructure and reputation and general, and fifth in terms of financial sector development.
Commenting on the Heritage Foundation's decision to remove Hong Kong from its economic freedom ranking citing its policies are controlled by Beijing, Mike Wardle, director and head of indices for Z/Yen, said it will affect some quantitative indicators, but Hong Kong's economic and law systems are still seen as very attractive to people wanting to bring in investment to financial centers.