Singapore Surpasses Hong Kong as Top Asian Financial Hub - GFCI
(27 Sept 2022 – Singapore) Hong Kong has been overtaken by Singapore to become Asia's preeminent financial centre according to the latest Global Financial Centres Index's (GFCI).
Singapore is now ranked third in the world after moving up three places. Hong Kong slipped to fourth place, anchored by strict COVID lockdowns and a “brain drain” of talent. The new report ranks New York and London ahead of the city state in first and second. San Francisco moved up two spots to round out the GFCI top five.
Hong Kong is struggling to revive its role as a global financial hub as it continues to follow China's lead in trying to keep COVID cases to a minimum, while the rest of the world opens up. Uncertainty surrounding the easing of quarantine rules, which has kept visitor numbers low, still threatens to affect major events.
Singapore is welcoming over four million visitors in 2022. The Chinese cities of Shanghai, Beijing and Shenzhen all maintained spots in the GFCI's top 10, in spite of COVD-19 mitigation measures that have effectively cut off the country.
Factors of competitiveness considered the most important are the general business environment, human capital, infrastructure, taxation, reputation, and financial sector development. The report also unveiled the most important factors that people in finance consider in deciding where to start up a new financial business. The three leading factors are "access to customers", "a trusted legal and arbitration system", and " the openness of the economy".
The 32nd round of the GFCI index, compiled by and Z/Yen Partners and the China Development Institute, ranks 119 financial centres from 66,121 financial centre assessments collected from 11,038 financial services professionals, with quantitative data about each financial centre forming instrumental factors.
“There is confidence in financial centres themselves even against a background of the Russian war in Ukraine, economic and energy instability, and inflationary pressures” the report stated.
"We will continue to listen to views and be bold in taking forward reforms to consolidate and strengthen Hong Kong's capital market and our role as an international financial centre. We are focusing on the city scoring a higher points rating than the year before” Hong Kong's government responded to the latest GFCI ranking In a 600-word statement.