Global Financial Centres Index 12 (GFCI 12)

Z/Yen's Global Financial Centres Index (GFCI) is a ranking of the competitiveness of financial centres based on a number of existing indices in combination with a regular survey of senior industry figures from around the world. A copy of the latest GFCI report, published in September 2012 is available to download here.

The main headlines of GFCI 12 are:

• The past trend of large rises in the ratings of Asia / Pacific centres appears to have stalled. Hong Kong, Singapore, Tokyo, Shanghai, Beijing, Taipei and Shenzhen all decline in GFCI 12. Centres on the mainland of China have seen significant declines with Shanghai the largest faller in the index, down 31 points (following a decline of 37 points in GFCI 11). Beijing is down 18 points. Hong Kong sees a 21 point drop (following a decline of 16 points in GFCI 11).
• GFCI respondents believe that the Asian centreswill continue to become more significant in the medium to long term. Some respondents question whether financial centres on mainland China will be able to continue their growth without relaxations in currency controls.
• The offshore centres, having suffered significant reputational damage in the past four years, regained ground in GFCI 10 and GFCI 11. GFCI 12 shows a mixed picture with no significant moves (apart from the Bahamas which gained 22 points). Jersey and Guernsey remain the leading offshore centres.
• The Euro crisis continues to be reflected in the GFCI ratings of the financial centres within the weaker Euro economies. Madrid, Lisbon, Dublin and Athens were all down in GFCI 10 and GFCI 11. These declines have continued in GFCI 12. Frankfurt and Paris both rose slightly in GFCI 11 but GFCI 12 sees a reversal of these gains. There have been some improvements in Europe. Geneva has now re-entered the GFCI top ten.
• Policymakers in Istanbul have been putting some resources into developing Istanbul as a regional financial hub and this is beginning to be reflected in the GFCI with the city moving up five places in GFCI 12.
• The picture in the Americas is mixed. The main centres in the USA are down in GFCI 12 with New York, Chicago, Boston, San Francisco and Washington DC all seeing falls in the ratings. In Canada, Toronto sees a very small decline whilst Montreal, Calgary and Vancouver have all risen. In South America, Sao Paulo shows the largest rise of the three Latin American centres.