Hong Kong is the world's third most attractive financial center as Asia outperforms weakening Europe

The SAR is set to pounce on London who’s been losing luster due to Brexit.

Hong Kong maintained its place as the third most attractive financial center globally and best in Asia on the back of stellar industry scores and investment into human capital and infrastructure, according to a Global Financial Centers Index (GFCI) published annually by commercial think-tank Z/Yen.

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This puts the SAR at a mere three points behind London who holds the second spot in the global rankings and five points behind New York who holds the crown. Hong Kong’s strong showing has seen it best the two Western powerhouses in terms of human capital and infrastructure.

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However, Hong Kong fell short of the London and New York’s dominance in the category of business environment, financial sector development and reputation after flopping to third place.

In terms of industry sectors, the SAR holds the crown in the investment management category and trails only behind London in banking. The city also had strong scores in insurance, professional services and government & regulatory after notching rankings inside the top five at 4th, 3rd and 2nd places respectively. 

The GFCI observed that Asian tigers like Singapore, Shanghai, Tokyo and Beijing are steadily making their presence known after nabbing places in the top ten as Western cities slowed down due to political uncertainties like Brexit. 

“The long-term trend since our first published edition in 2007 has been the consistent and persistent rise of Asian centres while the press and pundits focus on brief headlines about London and New York City,” Professor Michael Mainelli, executive chairman at Z/Yen said in a statement. “It is highly likely that an Asian centre will have the top slot very soon.”

The GFCI index is on its 24th edition and is updated every March and September as a reference for policy and investment decisions.