September 25, 2024
HONG KONG – Hong Kong regained third place in the latest global ranking of international financial centers, surpassing Singapore for the first time in more than two years, according to a report published on Tuesday, as the city continues to step up its efforts to consolidate its financial edge through various measures.
The 36th edition of the semi-annual Global Financial Centres Index, released by London-based think tank Z/Yen Group and Shenzhen-based think tank China Development Institute, showed that the Hong Kong Special Administrative Region ranked third out of the 121 financial centers across the globe, behind New York and London, which grabbed the top and second spots respectively.
Hong Kong’s overall rating jumped eight points, the biggest enhancement among the leading five. Granular ratings showed that Hong Kong achieved top place in various competitive areas such as “business environment”, “human capital”, “infrastructure”, and “reputational and general”. The report also ranked the SAR as a top 10 financial technology hub globally.
An HKSAR government spokesperson said the report clearly validates Hong Kong’s status and prowess as a leading global financial hub.
“As an international financial center, Hong Kong brings together the world’s top financial institutions and talent, provides professional financial services, and owns a deep and broad capital market,” the spokesperson said, citing the city’s regulatory system, free flow of information and capital as well as its unique geographical position.
Since 2007, the joint ranking by the British and mainland think tanks has been released in March and September every year. The latest index is based on a global online questionnaire and uses some 100 instrumental factors provided by third parties including the World Bank, The Economist Intelligence Unit, the OECD and the United Nations.
Singapore overtook Hong Kong to become Asia’s top financial center in 2022.
To restore Hong Kong’s allure, the city has been acting on multiple fronts, from opening up its virtual asset sector and proceeding with its offshore renminbi business, to wooing super-rich families.
The latest figures from the Securities and Futures Commission showed Hong Kong’s asset and wealth management business demonstrated resilience last year, logging a modest growth of 2.1 percent year-on-year to above HK$31 trillion ($3.98 trillion) in assets under management. Net capital inflows surged by more than 3.4 times last year compared to 2022 thanks to strong performances in private banking and private wealth management businesses.
Laurence Li, chairman of the Financial Services Development Council, said Hong Kong’s return to third position is a testament to the collaborative efforts of its financial community.
“As a premier international financial center, Hong Kong acts as a superconnector between Chinese mainland and the global market, fostering an environment that promotes innovation, sustainability, and connectivity,” said Li. “Capitalizing on our strong foundations and diverse strengths across sectors, we will continue attracting talent and investment from around the world.”