London Strengthens Its Position in Global Rankings
London is solidifying its status as a leading global financial hub, reducing the gap with New York City in the competition for the title of the world’s top financial centre, according to the latest Z/Yen Global Financial Centres Index.
The index ranks 121 financial hubs globally, revealing that London maintained its second-place position with a score of 750 points, reflecting a three-point increase from its previous ranking in March. In contrast, New York remains at the top with a score of 763 points, although it experienced a slight dip of one point during the same period.
Growing Competition Between London and New York
The competition between the two cities has intensified, with the gap between their scores narrowing by 15 points over the past 18 months. New York has held the top spot in the biannual rankings since surpassing London in September 2018. However, London’s recent gains indicate that it is becoming a more formidable contender for the title of the world’s leading financial centre.
Overall, the financial landscape appears stable, with the average rating of centres in the index declining by just 0.42% since March. This minor change suggests limited fluctuations in confidence within the global financial sector, despite slow economic growth and easing inflation.
Top Financial Centres Maintain Their Positions
The top five financial centres in the index remain unchanged, with Hong Kong reclaiming third place ahead of Singapore, while San Francisco rounds out the top five. Dublin emerged as the standout performer, jumping 11 places to rank 14th, up from 25th in the previous index. Conversely, several European hubs, including Frankfurt, Paris, Zurich, Geneva, and Luxembourg, experienced declines in their ratings.
In the rapidly evolving fintech sector, New York continues to lead, closely followed by London. Shenzhen made significant strides by overtaking San Francisco for third place by a narrow margin.
Geopolitical Risks and Future Confidence
Hong Kong joined Washington D.C., Los Angeles, Chicago, Singapore, and Seoul in the top 10 fintech centres, replacing Shanghai, which fell to the 15th position.
Mike Wardle, chief executive of Z/Yen, stated, “Geopolitical risks are identified as the greatest challenge facing financial centres and their development.” He emphasized that confidence in leading international financial centres remains robust, with many improving or maintaining their ratings in this index.
The rankings are determined by 143 factors sourced from third-party organizations, including the World Bank, OECD, and United Nations, as well as 37,830 assessments from industry professionals gathered through an online questionnaire. The index’s top 10 also includes Chicago, Los Angeles, Shanghai, Shenzhen, and Frankfurt, with the latter two re-entering the group, displacing Geneva and Seoul.
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