The Hong Kong Special Administrative Region secured third place globally in the Global Financial Centres Index, published on Thursday, narrowing the gap with the top-ranked financial center.
The 37th edition of the index, published by UK-based Z/Yen and the China Development Institute in Shenzhen, evaluates financial centers based on business environment, human capital, infrastructure, financial sector development, and reputation.
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The city’s overall rating increased by 11 points to 760, though its global ranking remained unchanged from last year. New York City topped the list of 119 global financial centers with a score of 769, followed by London at 762.
The international financial hub remained first in the Asia-Pacific region, followed by Singapore and Shanghai.
Hong Kong excelled across multiple financial sectors, ranking first globally in investment management, insurance and finance, while placing third in banking. The city also made significant strides in fintech, climbing five places to the fourth position worldwide.
The index has been released twice a year since 2007.
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A government spokesman said, “The report fully recognizes Hong Kong’s leading status and strengths as an international financial center. Hong Kong’s rankings in the areas of ‘human capital’, ‘infrastructure’, and ‘financial sector development’ rose to second in the world, while rankings in ‘business environment’ and ‘reputational and general’ rose to third globally.
“With the staunch support of our country, Hong Kong will continue to leverage the advantages under ‘one country, two systems’, actively integrate into national development, and deepen international exchanges and co-operation, with a view to fulfilling our roles as a ‘superconnector’ and a ‘super value-adder’,” the spokesman added.
The spokesman said, “Finance is an important tool to support the development of the real economy.”
In a note, Tan Yueheng, executive director of BOCOM International Holdings Co Ltd, suggested that Hong Kong should optimize its listing systems, increase quality listed companies, and support more high-tech enterprises going public.
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He called for attracting Chinese-mainland unicorns and military-industrial enterprises with international competitiveness to list and raise funds in Hong Kong.
“By introducing mainland high-tech enterprises with high growth potential, Hong Kong can reshape its capital market image, attract global capital to share in the country’s technological innovation dividends, and provide global investors with high-quality allocation options beyond the US market,” Tan said.
