,Singapore

Here's why Singapore can't beat Hong Kong's financial centre ratings

Its ratings jumped four points to 796, whilst Hong Kong's jumped two points to 783.

Singapore maintained its position in the top four financial centres of the world and raised its overall rating (769) by four points, the Global Financial Centres Index (GFCI) revealed. The city joined this year’s GFCI 24, which is previously GFCI 23 last year before Cape Town, South Africa joined the list.

The GFCI surveys bankers worldwide through a questionnaire on financial centres. Cities are then ranked in the GFCI and are assessed annually for changes.

New York (788) and London (786) switched places in the index and now hold the first and second positions, respectively. Hong Kong (783) followed and made it to third place, effectively beating Singapore by 14 points.

According to the survey, Hong Kong, Singapore, and Shanghai all continued to close the gap on the New York and London. “The long-term news (a bit of a contradiction) is that Singapore, Hong Kong, and Shanghai will be over-and-under taking for a while before ratings settle, if ever. It is highly likely that an Asian centre will have the top slot very soon,” said Z/Yen Group executive chairman Professor Michael Mainelli.

Notably, Hong Kong is now only three points behind London. The report cited a banker that said, “New York and London don’t seem to be doing anything to fight off the Asian challenge.”

Singapore is the fifth city likely to be more significant as it garnered 65 mentions from bankers in the past 24 months. Shanghai and Qingdao are also likely to become significant with 198 and 107 mentions.

To assess how financial centres perform in each of these areas, the GFCI factor assessment model is run separately for each of the five areas of competitiveness at a time. Singapore ranked fourth across all areas, namely, business environment, human capital, infrastructure, financial sector development, and reputation & general.

Most bankers from abroad also think that Singapore is “a little more competitive” compared to theirs in terms of prospects. The city is also considered the most stable amongst the top 40 centres in GFCI 24.

The survey also categorised bankers by the industry they are working in. It revealed that across all sectors, Singapore ranked high: insurance (3rd), banking (5th), investment management (5th), professional services (4th), and government & regulatory (4th).

The survey also sorted responses based on the bankers’ organisation size. Singapore scored consistently high across all categories.

The study was produced by Z/Yen in London and the China Development Institute (CDI) in Shenzhen. 

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Banks should have enough buffers and find climate transition risks manageable.
The initiative is expected to improve the operating environment for SG businesses.
This includes the upgrade to the latest data acquisition and control system.
A potential incentive fee of up to $18m may be applied. 
This is part of the group’s efforts to spearhead maritime decarbonisation.
This is higher compared to September's retail sales YoY increase at 6.8%.
Restaurants experienced the most YoY decline at 24%. 
Over 40 companies were recognised in the 7th edition of the awards programme.
VTL scheme to proceed “without change” amidst detection of Omicron variant in Korea.
SATS, Sembcorp Industries, and the SGX led the index.
Birth rates in the country have declined since the pandemic began.
It represents a premium to the property’s book value of approximately $20.6m.
The move will be part of the redevelopment of the Central Mall properties.
It also waived its right to walk away from potential material adverse effects.