12 March 2010
London and New York lead world in latest Global Financial
Centres report
London and New York are tied for first place in the latest
Global Financial Centres (GFC) report, published today by the City
of London Corporation.
The data was collected between July and December 2009, a period
of considerable volatility as the global economic recovery got
underway. London (-15 points in the ranking to 775 from 790) was
one of four centres to see a decrease in its ratings (Shenzhen
(-25), Guernsey (-6), and Dublin (-1)), despite an overall return
of confidence. Meanwhile, New York (+1) held steady in the face of
concerns over the regulatory environment.
Asian centres continued to make gains, with Hong Kong,
Singapore, Tokyo, Shanghai and Beijing, in particular, all
recording strong performances.
The study, the seventh of its kind produced by Z/Yen Group, also
indicates that the gap between the top two and Hong Kong in third
has narrowed. It now stands at 36 points, down from 45 in GFCI 6
and 81 in GFCI 5.
Stuart Fraser, Policy Chairman at the City of London
Corporation, said:
'Although London and New York have always led the pack, this
research is a wake-up call for decision-makers that our standing as
a world-leading global financial centre should not be taken for
granted. Damage has been done to the Square Mile's perceived
competitiveness relative to New York but this is not irreversible
provided the new incoming government – regardless of political
persuasion – makes a clear, positive statement on their "direction
of travel" with regard to tax and regulation. Not everything can be
achieved at once but businesses need confidence that over the
longer term the government of the day is supportive of the
financial services industry as a wealth generator for the UK
economy.
'We cannot afford to be complacent in the face of growing
competition across the world, not just in the USA but also
increasingly Asia. There is a danger that new regulation could
accelerate this shift in the financial centre of gravity towards
fast-developing markets by undermining the UK's competitiveness.
Industry and government must work together to ensure that this does
not happen.'
GFCI 6, published in September 2009, showed a general return of
confidence among respondents - with all but three centres (Dublin,
Glasgow and Gibraltar) recording stable or higher results than
previous ratings.
The GFC report tracks the underlying competitiveness of
financial centres. The rankings are compiled by the independent
Z/Yen Group from surveys of finance professionals around the world
and competitiveness indicators.
Ends
Notes to editors
- Download (from Friday) a copy of GFC-7 report from
www.cityoflondon.gov.uk/researchpublications.
Before then available under embargo by email.
- About the City of London: The City of London
supports and promotes the Square Mile as a world leading
international financial and business centre and provides local
government and police services for workers, residents and visitors.
It also provides valued services to London and the nation as a
whole including management of Guildhall Art Gallery, the Barbican
Centre, the Central Criminal Court at Old Bailey, 4,240 hectares of
open space, three wholesale food markets and acts as London’s Port
Health Authority.
Press contact
Sanjay Odedra
Tel 020 7332 1835
Mob 07954 327370
Email
sanjay.odedra@cityoflondon.gov.uk