Hong Kong steps up as 4th leading financial centre in the world

The city’s rating, however, slips two points, the index shows.

Hong Kong has climbed one place to fourth in the 29th Global Financial Centres Index (GFCI) out of 114 centres, despite the impact of the COVID-19 pandemic.

The government noted the overall ratings of financial centres have yet to recover to their pre-pandemic levels, highlighting the continuing impact of the pandemic.

"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,” a government spokesman said. “Nevertheless, Hong Kong's financial system has been operating smoothly, the Linked Exchange Rate System and various facets of the markets have been functioning in an orderly manner."

Hong Kong attained a 741 rating, two points lower than its rating in the 28th GFCI where the city ranked 5th.

The spokesman added Hong Kong is well-positioned to maintain its status as a leading financial centre. On top of this, it was noted that the National People’s Congress’ 14th five-year plan includes measure to further develop the sector.

“We will continue to enhance our 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 our country's 'dual circulation'," the spokesman said.

New York maintained its position at the top, despite dropping six points to 764. It is followed by London and Shanghai with 743 and 742, respectively.

Also included in the Top 10 are Singapore (740), Beijing (737), Tokyo (736), Shenzhen (731), Frankfurt (727), and Zurich (720).

The report noted that among the financial centres that performed relatively better were Vancouver, Seoul, Sydney, Milan, and Stuttgart after rising more than five places.

The average rating of centres declined 3.5 points or 0.55% from the 28th GFCI, lower than the 41-point average decrease between the 27th GFCI and the 28th GFCI.

The index noted this may signal increased confidence, compared to the earlier stage of the pandemic.

The 29th GFCI, launched by Z/Yen Group and China Development Institute (CDI), used 65,507 financial cenre assessments from 10,774 financial services professionals.