People walk along the Central Waterfront Promenade on Aug 21, 2023, with towering skyscrapers, including the International Finance Centre (left) and the International Commerce Centre (right), in the backdrop. (SHAMIM ASHRAF / CHINA DAILY)

HONG KONG – Hong Kong has retained the fourth spot among 121 global financial centers in comprehensive competitiveness, according to a report published on Thursday.

New York, in the top spot since deposing London in September 2018, has easily remained the world's top financial center with 763 points while London faced a tougher fight with Hong Kong and Singapore to retain its second position, coming in at 744 points.

The special administrative region came in at 741 points – just one point behind Singapore – to be ranked fourth based on surveys of 147 factors covering 121 centers provided by third parties, including the World Bank, OECD, and the United Nations.

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The 34th edition of the “Global Financial Centres Index”, jointly compiled by Shenzhen-based think tank China Development Institute and London-based think tank Z/Yen, also showed that Shanghai ranked seventh globally, also unchanged.

Home to three major global financial centers, Hong Kong, Shenzhen and Guangzhou, the Guangdong-Hong Kong-Macao Greater Bay Area offers a diverse cultural environment, vast market prospects, and unprecedented opportunities to global financial institutes and investors.

Liu Guohong, Vice-President, China Development Institute

San Francisco maintained its No 5 position, while Los Angeles maintained sixth place, Washington, DC, moving up three positions, landed on the eighth spot. Chicago and Geneva took the ninth and 10th spots respectively.

The index is compiled every six months. In the index published in March, the HKSAR also ranked fourth after New York, London and Singapore.

“While the path to global economic revival remains uncertain, the overall scores of financial centers have been on the rise. The rankings of top-tier financial centers have become more stable, and there is an uplift in the development prospects of them,” said Liu Guohong, vice-president at China Development Institute.

According to the report, the three major financial hubs in the Chinese mainland — Shanghai, Shenzhen, and Beijing — have demonstrated stable performances and entered the ranks of “Centres Likely To Become More Significant”. 

Cities such as Guangzhou and Qingdao have seen accelerated progress in their rankings as emerging financial centers, the report said. Guangzhou’s global ranking climbed five spots to 29th.

“Home to three major global financial centers, Hong Kong, Shenzhen and Guangzhou, the Guangdong-Hong Kong-Macao Greater Bay Area offers a diverse cultural environment, vast market prospects, and unprecedented opportunities to global financial institutes and investors,” Liu said.

The think tanks also examined fintech development in different financial centers worldwide and found that China and the United States each secured seven places in the top 20 financial centers. Shenzhen remained at the fourth spot, following New York City, San Francisco and London. Hong Kong ranked 14th.

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The report showed that compared with half a year ago, the overall performance of China’s financial centers have experienced a setback in terms of fintech, with Beijing climbing two spots in the rankings, while cities like Chengdu, Guangzhou, and Qingdao saw a slight decline in their rankings.

The Wall Street sign is pictured at the New York Stock Exchange in the Manhattan borough of New York City, New York, US, March 9, 2020. (PHOTO / REUTERS)

The results of the GFCI 34 are based on research on five major indicators — business environment, human capital, infrastructure, development level of financial industry, and reputation. The index, launched in 2007, is released twice a year.

Rows of houses lie in front of the City of London skyline in London, Britain, March 19, 2023. (PHOTO / REUTERS)

According to the Economic Freedom of the World 2023 Annual Report, Hong Kong continues to be one of the world’s freest economies, ranking second globally. 

READ MORE: HK continues to rank among top in Global Innovation Index

Among the report’s five areas of assessment, the city kept its top rank in “freedom to trade internationally” and came in third in “regulation”, the report published by the Fraser Institute said.

In the Global Innovation Index (GII) 2023 published on Wednesday, Hong Kong was ranked fifth in Asia, and 17th globally among 132 economies.