2017 Global Financial Centres Index places London at the Top; Mumbai ranked at 60th position

Sep 13, 2017 14:46 IST
2017 Global Financial Centres Index places London at the Top; Mumbai ranked at 60th position

Z/Yen group on 11 September 2017 released its twenty-second Global Financial Centres Index (GFCI 22). The index ranks London at the top position with 780 points, while New York was placed at the second position with 756 points. The index was published in collaboration with the China Development Institute (CDI).

India’s financial capital Mumbai was placed at the 60th position, which is three positions up from the March edition of the Index.  
The GFCI is released twice a year, in March and September, and ranks 92 financial centres.

Top 10 Centres in the Index are

Position

Centre

Points

1

London

780

2

New York

756

3

Hong Kong

744

4

Singapore

742

5

Tokyo

725

6

Shanghai

711

7

Toronto

710

8

Sydney

707

9

Zurich

704

10

Beijing

703

2017 Global Financial Centres Index

Major Highlights of the Index  

Drop in Confidence: The Z/Yen Group in its release says that “There is an overall drop in confidence amongst the leading centres. Of the top 25 centres, 23 fell in the ratings and only two rose. At the lower end of the table, 20 of the 25 lowest rated centres actually rose in the GFCI ratings.”

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Change in top 5 Positions: The Z/Yen Group in its release says that “There is little change in the top five positions. London and New York remain in first and second places. Interestingly, despite the ongoing Brexit negotiations, London only fell two points, the smallest decline in the top ten centres. Hong Kong has moved just ahead of Singapore into third – only two points ahead on a scale of 1,000. Tokyo remains in fifth.”

Reduction in Gap: The Z/Yen Group in its release said “The gap between third place Hong Kong and second place New York is now only 12 points. This is the smallest gap between second and third places for over five years. New York fell by 24 points, the largest fall in the top 15 centres, presumably due to fears over US trade.”

Volatility: The Z/Yen group in its release says that “The Western European financial centres are still volatile. Frankfurt, Dublin, Paris, and Amsterdam all rose, but Zurich, Geneva, and Luxembourg fell in the ratings. Overall assessments for the European centres continued to fluctuate as people speculate about which centres might benefit from London leaving the EU. However, the majority of centres in the region rose with Stockholm, Copenhagen, and Vienna all showing strong rises.”

Fall in ratings of Asia/Pacific region: The Z/Yen group in its release says that “The leading financial centres in the Asia/Pacific region fell in the ratings. All of the top ten centres in the region fell in the ratings with Singapore, Tokyo, and Osaka all showing marked declines. These are reverses of strong gains made in 2015-16.”

North America: The release by the Z/Yen group says that “All centres in North America fell in the GFCI ratings. As mentioned above, New York fell. San Francisco, Boston, Chicago, and Washington also saw large falls. The decline of Canadian centres was less severe than the falls of the USA centres.”

Eastern Europe: The released says that “All of the Eastern European centres rose in the ratings. Cyprus, Athens, St Petersburg, and Moscow reversed some of their recent declines.”

The Middle East and Africa: The financial centres in the Middle East and Africa showed mixed results in GFCI 22. Dubai and Casablanca fell slightly, but other centres in the region did well. Abu Dhabi, second in the region, reduced the gap to first place Dubai to just nine points. Elsewhere in the Middle East, there were good rises for Bahrain and Riyadh.

• Latin American and Caribbean centres did well. The Caribbean centres of the British Virgin Islands and the Bahamas saw strong rises. Sao Paulo and Rio de Janeiro also did well. Buenos Aires joined the main GFCI, but Santiago remains an associate centre having failed to accumulate a sufficient number of assessments to enter the main index.

• European ‘island’ centres did well. The British Crown Dependencies of Jersey, Guernsey, and the Isle of Man all performed strongly and there were also strong rises for Malta, Reykjavik, and Gibraltar.

Global Financial Centres Index (GFCI)

The Global Financial Centres Index (GFCI) was first published by the Z/Yen Group in March 2007 following a research project into city competitiveness which was undertaken in 2005 and compiled at the later stage.

AIM: The aim of the GFCI is to examine the major financial centres globally in terms of competitiveness. The GFCI has been published every six months (although the index is actually produced every three months).

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