Asia, exponential growth for financial centers

30/09/2019

 

 

Hong Kong confirms its third position in the standings, after New York and London, and immediately before Singapore

 

 

The latest global financial centers index (GFCI) was published earlier this month by the China Development Institute in collaboration with the Z / Yen group. The GFCI is updated in March and September each year, receiving considerable attention from the global financial community.

The latest index analyzed 114 financial centers, of which 104 were included in the main index using quantitative measures provided by third parties, including the World Bank, the Intelligence Unit for economists, the OECD and the United Nations. The index provides the ranking of global financial centers and the score based on different parameters, such as the corporate environment, human capital, infrastructure level, financial sector development and reputation.

 

Shanghai, the first financial center of mainland China, is 12 points behind London

 

Asian financial centers performed well, with six of the TOP 10 indexes in Asia. Hong Kong confirms its third position in the standings, after New York and London, and immediately before from Singapore.

Shanghai, the first financial center of mainland China, is only 12 points behind the number 2 London (773) which has lost 14 points in the last six months. Given the Brexit case, it seems likely that London will fall lower among the rankings and will soon be overtaken by Shanghai.

Other Chinese cities are emerging as global centers: in addition to the TIER-1 cities such as Beijing (7th), Shenzhen (9th) and Guangzhou (23rd), the GFCI highlights the birth of Qingdao (33rd), Taipei (34th) ) and Chengdu (73 °)).

Other important financial centers in Asia are in Japan (with Tokyo and Osaka respectively 6th and 27th), South Korea (Seoul 36th and Busan 43rd), while the main centers in ASEAN countries have all been classified in the TOP10 (45th Kuala Lumpur, 50th Bangkok, Jakarta 91st and Manila 97th).

 

For the first time the GFCI was accompanied by a FinTech index

 

The novelty for this year’s GFCI is the presence, for the first time, of a new FinTech index. The Fintech index is dominated by the Chinese cities that occupy five of the top seven places, with Beijing and Shanghai in pole position. The fintech, moreover, has penetrated a wide range of financial services in China, ranging from digital payments, digital insurance to online banking and mobile asset management.

At the base of the strong growth of the sector there are mainly two factors, one of which is rapidly growing domestic consumption throughout the country. The second is due to the fact that China has led the adoption of cutting-edge technologies relevant to consumer-oriented financial services

 

 

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