HONG KONG, Sept 25 — For the first time in two years, Hong Kong has reclaimed its position as Asia’s leading financial hub, surpassing Singapore, as revealed in the latest semi-annual Global Financial Centres Index published yesterday.
It was reported in South China Morning Post (SCMP) that globally, Hong Kong secured the third spot, following New York and London, while Singapore and San Francisco completed the top five in the ranking of 121 cities compiled by the China Development Institute in Shenzhen and the London-based think tank Z/Yen Partners.
Hong Kong ceded its position as Asia’s leading financial hub to Singapore in the September 2022 ranking, following the easing of travel restrictions in Singapore in April of that year. In contrast, Hong Kong maintained its restrictions until January 2023. Recently, a robust stock market and the introduction of new listings have bolstered the city’s reputation as the premier financial centre in the region.
“The Global Financial Centres Index ranked Hong Kong high in many areas, ranging from business environment to fintech and banking to wealth management,” said Christopher Hui Ching-yu, Secretary for Financial Services and the Treasury, during the 5th Belt and Road Initiative Tax Administration Cooperation Forum.
He also noted to SCMP that the index indicates significant improvements in Hong Kong’s status as an international financial centre.
Hui said that the combination of improved stock market sentiment and the China Securities Regulatory Commission’s announcement in April to support major mainland companies listing in Hong Kong has revitalised the initial public offering (IPO) market there.
For instance, Midea Group, the world’s largest home appliance manufacturer, saw its shares surge by 8 per cent on its debut last week after raising US$4 billion (RM16.5 billion) in its IPO, marking Hong Kong’s largest listing since JD Logistics’ US$3.64 billion offering in 2021.
Additionally, the US Federal Reserve cut its key interest rate by half a percentage point last Thursday, signalling the beginning of a monetary easing cycle, while Hong Kong’s commercial banks reduced their prime and deposit rates by a quarter-point. These actions, along with various measures announced by China on Tuesday, have further bolstered the stock market, SCMP reported.
In Asia, Kuala Lumpur made significant strides, boosting its rating by 13 points to reach 680, securing the 59th position globally. Hong Kong increased its score by eight points to 749, while Singapore followed closely, gaining five points to reach 743.
SCMP said the report indicated that Hong Kong scored highly in several competitive categories, including business environment, human capital, infrastructure, and reputation. Notably, the city ranked first overall in investment management.
Financial Secretary Paul Chan Mo-po attributed Hong Kong’s strong performance in various sectors to the government’s initiatives in promoting family offices, wealth management, fintech, and green finance.
The report, which also evaluate the fintech capabilities of financial centres, ranked Hong Kong among the top 10, moving up five positions to secure the ninth spot.
