If money makes the world go round, then the financial centers of the world keep money moving around. Major Banks, financiers and financial markets base their operations in the world’s financial centers, attracting talent, business and opportunity.
The Global Financial Centre’s Index studies and ranks global financial centers and positions itself as the “world’s most authoritative comparison of the competitiveness of the world’s leading financial centers”. Three of the top 5 cities in its most recent ranking, are from Asia and, thus, we thought we would highlight these global leaders.
New York City
With a reputation as the world’s financial capital, this centre needs little introduction. It is home to legendary institutions and venues such as Wallstreet, the New York Stock Exchange, and all of the best banks and other financial services providers. It is also located in the United States, the world’s largest economy and is a very diverse and well-connected city.
London
For possibly centuries before New York City grew to dominate global finance, London was the world’s financial center, supported by its position as the capital city within the British Empire and its long history as a trading center since the middle ages. Even today, it remains constantly at odds with New York City for the top position. It is home to the quirkily named “Footsie” (FTSE) index of the London Stock Exchange.
Hong Kong
Carrying on from its glory days as the British Empire’s stronghold in the Far East, Hong Kong remains one of the world’s foremost financial centers. It is strategically located and has, for decades, acted as an intermediary for trade between China and the rest of the world. It is a politically stable jurisdiction and enjoys plenty of freedom of trade and movement and is home to the 6th largest stock exchange in the world.
Singapore
With a world-class, free and open financial system, exceptional political stability, and diplomatic neutrality, Singapore is often referred to as the Switzerland of the east. It is also one of the largest foreign exchange markets in the world and provides the best US dollar liquidity in Asia.
Shanghai
As the financial center of the world’s 2nd largest economy, China, it is no surprise that Shanghai is amongst the top 5. It is home to China’s largest stock market in terms of turnover and market capitalization. As China further opens up its economy, expect this city to climb on this list.