Chinese mainland cities are catching up rapidly with traditional global financial centers, with Shanghai replacing Tokyo to occupy fifth place and Beijing marching into the top 10 list, according to the latest Global Financial Center Index.
The Index, published on Wednesday, is jointly compiled by London-based think tank Z/Yen Group and Shenzhen-based think tank China Development Institute.
The think tanks based their results on a number of factors, including business environment, financial system, infrastructure, human capital and reputation of cities. A total of 100 cities across the world are covered in the research.
New York, London and Hong Kong won the top three spots as the leading global financial centers in the world, according to the Index.
They are followed by Singapore and Shanghai, which take up fourth and fifth place, respectively.
Shanghai’s position as a global financial center is strengthening, as the city has replaced Tokyo to jump into the top five and its gap with Singapore is narrowing, the think tanks said.The other five cities in the top 10 list are Tokyo, Sydney, Beijing, Zurich and Frankfurt, with Beijing being the first time to march into the rank.
Among the top 10 cities, six are in the Asia-Pacific region, three are from western Europe and one is from North America, which shows that emerging financial markets in the Asia-Pacific region has already exceeded traditional ones in the west.
“In the past 20 years, development of China and the Asian region has been very strong. China and some other countries in the Asia-Pacific region are doing very well in economic development over the past one or two years, especially in terms of finance,” Michael Mainelli, executive chairman of Z/Yen Group, said.
“So we can see that they are growing rapidly in the Index.”