Cayman falls as Singapore overtakes Hong Kong in financial center index

Singapore has overtaken Hong Kong to become the third ranked financial center in the 19th Global Financial Centers Index.

London remains the top financial center ahead of New York. Tokyo is in fifth place, according to the bi-annual index which rates 86 financial centers.

The Cayman Islands dropped seven places from 34 to 41. With the exception of Mexico City, all financial centers in Latin America and the Caribbean saw significant falls in the rating. The BVI dropped three ranks to 46 and Bermuda tumbled nine spots to 50th position. Guernsey and Jersey also fell by nine and 12 places in the index to 62 and 66 respectively.

“Whilst London and New York still lead the field, the next three centers are all Asian,” says Mark Yeandle, associate director at the Z/Yen Group and the author of the GFCI. “Five of the top 10 centers are now North American, perhaps reflecting the surge in Fintech and blockchains.”

Seven of the top 10 Asia-Pacific centers saw a drop in their ratings, with Seoul and Sydney showing the largest falls. However, Singapore, Tokyo and Beijing rose slightly in the GFCI 19.

London remains just ahead of New York to retain the number one position by just eight points.

“The GFCI is on a scale of 1,000 points and a lead of eight is fairly insignificant,” said Z/Yen group, which published the report. “We continue to believe that the two centers are complementary rather than purely competitive. A number of respondents to our questionnaire have commented that the uncertainty surrounding the possible exit of the U.K. from the EU is having a negative impact on London’s competitiveness at present.”

Of the financial centers in the U.S., New York, Washington DC and Los Angeles rose in the ratings. The three leading Canadian centers fell in the ratings after strong rises in the past year. Toronto remains the leading Canadian center with Montreal in second and Vancouver in third.