A new ranking of global financial centres has placed New York first with London in second place. The index compiled by Z/Yen and the China Development Institute saw strong representation for Asian cities with Shanghai, Tokyo, Hong Kong, and Singapore all featuring in the top six.
Newer centres will be encouraged that the index places so many amongst the elite level which bodes well for economic recovery. It may not be a surprise to see historic global hubs such as New York and London high in this ranking but seeing Shenzen in the top ten, and Dubai appearing in the top twenty, are striking evidence of the success that can been achieved in a relatively short period of time – not least when Dubai is sandwiched between Frankfurt and Paris – cities which had at least half a millennium head-start.
Volatility has been identified as a significant factor this year by Z/Yen executive chairman Michael Mainelli. He said, “uncertainty about trade, political stability, and the economic impact of the Covid-19 pandemic has injected more volatility into the index results.” Overall the index saw an average rating decline by over six percent.
That decline was described by the index authors as potentially showing, “a more general lack of confidence in finance during a time of continuing uncertainty around international trade, the impact of the Covid-19 pandemic on individual economies, and geopolitical and local unrest.”