Global Financial Centres Index 23 - Overall Increase in Confidence For The Leading Centres

Today Z/Yen Partners and the China Development Institute (CDI) publish the twenty-third Global Financial Centres Index (GFCI 23). We are holding the launch Conference in Qingdao. The GFCI rates 96 financial centres. The top ten are shown to the right. Full details are available here. The main headlines are shown below.

There is an overall increase in confidence for the leading centres. Signs of a bias towards stronger and more established centres are evident with the top 25 centres all rising in the ratings. Ratings fell for all of the lowest 50 centres.
London and New York remain at the top of the rankings and the gap between them in ratings closed to one point on a scale of 1,000. Hong Kong retains third place. London’s rating rose less than the other four top centres.

There is now less than 50 points between the top five centres. San Francisco and Shenzhen moved into the top ten, replacing Beijing and Zurich.

Western European financial centres remain volatile. The top five centres rose in the ratings. Most of the lower placed centres lost ground. Hamburg, Munich, Monaco, and Madrid, rose strongly in the ranks, with other improvements for Paris, Jersey, Edinburgh, and Lisbon. Hamburg in particular rose 38 places in the ranks.

In the Asia/Pacific region, the leading centres improved their ratings. There were significant rises in the ranks for Qingdao, Bangkok, Kuala Lumpur, and Busan. Tianjin and New Delhi are new entrants to the GFCI.

North American centres generally achieved improved ratings and improved their ranks accordingly.This was a reversal from GFCI 22. The exception was Washington DC, which dropped 20 places in the rankings. Montreal also dropped by one place (although its rating was 22 higher than in GFCI 22).

All centres in Eastern Europe and Central Asia suffered a fall in their ratings. However, Cyprus, Istanbul, and Moscow rose in the ranks. Tallinn and Riga both fell over 30 places in the ranks. Astana and Baku are new entrants to the GFCI.

In the Middle East and Africa, only Dubai and Abu Dhabi increased their ratings. Mauritius, Riyadh, and Casablanca improved their ranking despite falls in their ratings.

All centres in Latin America and the Caribbean fell in the GFCI ratings except for the Cayman Islands. Despite the fall in the ratings, six centres rose in the ranks with the Bahamas leading the way rising 22 places. The Cayman Islands are now the leading centre in the region.

European ‘island’ centres fell back after rising in GFCI 22. The British Crown Dependencies of Jersey, Guernsey, and the Isle of Man all fell in the ratings.

Mark Yeandle, Director of Z/Yen Partners and the author of the GFCI, said "All the top centres have risen in the ratings. London remains on top despite Brexit concerns but rose less than any other centre in the top fifteen.”

Professor Fan Gang, President of the CDI, said "Eight Chinese financial centres have entered GFCI and are continuously doing well. As an economist, I am very proud of achievements of China’s economy. However, it is crucial to keep a realistic and sober mind amidst the chorus of praise.”

GFCI 23 Top Ten Centres