22 September 2009

Latest Global Financial Centres Index shows London and New York still ahead as Asian centres do well

The latest independent Global Financial Centres Index (GFCI), published today, shows London and New York ahead as Asian centres make a surprise surge to take five of the top 10 rankings.

Hong Kong and Singapore both saw their ratings increase and have closed on London and New York (which retain first and second positions respectively).

The study, the sixth of its kind produced by Z/Yen Group, suggests that a group of four ‘global’ financial centres have now emerged ahead of the rest.

Other fast-growing Asian centres, including Shanghai, Beijing and Shenzhen also posted large rises. These three were named among centres 'likely to become more significant', with Dubai falling from the top of this up-and-comers list.

A spokesperson for the City of London Corporation, which commissioned the research said:

'This independent research demonstrates three trends: cautious optimism that the global financial services industry is showing signs of recovery, further movement of the financial business centre of gravity towards fast-developing markets - especially in Asia; and the emergence of a 'Premier League' of economically and socially interconnected cities.

This data was compiled in an exceptional period of volatility in global markets, which explains the wide range of readings. Of course, we recognise that Asian centres are growing strongly but the speed and size of the surge is a surprise and we are commissioning further research to find out the detailed reasons for this.

'An in-depth study of Chinese centres, in particular, is needed to see what factors are driving this perceived trend.'

The report – which is based on a wide survey of leading global financial players – suggest that the rise of Asia is part of a more general return of confidence among respondents - with all but three centres (Dublin, Glasgow and Gibraltar) recording stable or higher than previous ratings.

GFCI 5, published in March 2009, saw each of the 62 centres listed experience an overall ratings drop in the face of global economic turmoil. Now, six months later, the overall ratings have returned to the levels exhibited in last September’s GFCI 4.

The spokesperson continued: 'London is well positioned to take advantage of these changes by utilising the benefits of an internationally recognised language and commercial law framework, as well as an opportune time-zone, to act as a bridge between various centres. Three of the four global leaders are financial centres with legal systems based on English Commercial Law.

The GFCI tracks the underlying competitiveness of financial centres. It is commissioned every six months by the City of London Corporation. The rankings are compiled by the independent Z/Yen Group from surveys of finance professionals around the world and competitiveness indicators. The survey responses were collected between January and June 2009.

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