Photo taken on June 22, 2016 shows a view of Victoria Harbour in Hong Kong, south China. (QIN QING/XINHUA)
Hong Kong ranks fourth among 126 global financial centers in comprehensive competitiveness, moving up one spot from the previous year, according to a new report published on Wednesday.
The Global Financial Centres Index 29, jointly compiled by Shenzhen-based think tank China Development Institute and London-based think tank Z/Yen, also showed that Shenzhen’s global ranking climbed one spot as well, from ninth to eighth.
The Global Financial Centres Index 29, jointly compiled by Shenzhen-based think tank China Development Institute and London-based think tank Z/Yen, also showed that Shenzhen’s global ranking climbed one spot as well, from ninth to eighth
New York City topped the list, followed by London and Shanghai. Beijing ranked sixth, moving up one spot.
Singapore ranked fifth while Tokyo landed on the seventh spot. Frankfurt and Zurich took the 9th and 10th spots, respectively.
“An evident trend we’ve observed in our study is that Chinese financial centers are generally catching up,“ said Yu Lingqu, vice-director of the Centre for Financial Studies at the China Development Institute. Among the top 10 on the list, four are from the Chinese mainland.
“In particular, Shenzhen is worth noting. It is the fastest-growing financial center on the Chinese mainland, with robust development in such aspects as financial technology and green finance.”
The think tanks also examined fintech development in different financial centers worldwide and found that mainland cities outperformed others, with Shanghai, Beijing and Shenzhen in second, third and fourth place respectively, following New York. The Hong Kong Special Administrative Region ranked sixth.
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The results of the GFCI 29 are based on research on five major indicators — business environment, human capital, finnacial infrastructure, development level of financial industry, and reputation. The index was launched in 2007 and is released twice a year.
At a seminar held on the sidelines of the GFCI 29 release, Christopher Hui Ching-yu, Secretary for Financial Services and the Treasury of the HKSAR government, said although the COVID-19 pandemic has brought some uncertainties to the market, the SAR’s financial market still has strong resilience, as evidenced by its performance in initial public offering financing and trading volume.
The HKSAR was ranked as the world’s second-largest IPO market last year, with equity funds raised hit US$51.28 billion, up 27 percent from 2019.
The city’s geographical advantage as an international financial center is also being consolidated, he said, adding that an increasingly growing number of US-listed mainland companies are seeking a secondary listing in the HKSAR.
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Au King-lun, executive director of the Financial Services Development Council, said the unique strengths of the HKSAR’s financial industry lie in its high effectiveness, the diversity of its financial products, the abundant investment tools, and strong liquidity.
The HKSAR can play a bigger role as a “super connector” to help the outside world tap into the growing opportunities from the mainland’s rise, he said.
A spokesman for the HKSAR government said it will continue to enhance its role as the gateway between the mainland and international markets, leverage the vast opportunities presented by the Guangdong-Hong Kong-Macao Greater Bay Area and the Belt and Road Initiative, and contribute to the country's “dual circulation”.
"With the evolving situation of the COVID-19 pandemic, coupled with other uncertainties in the global environment, financial markets globally have become more volatile over the past year or so. Nevertheless, Hong Kong's financial system has been operating smoothly," the spokesman said.
"Hong Kong is the premier listing venue of choice for enterprises around the globe. We have been the second-largest listing venue for biotechnology companies, the world's largest offshore Renminbi business hub and the second-largest private equity centre in Asia," he added.
With inputs from Agencies
