Hong Kong rises to third in Global Financial Centres Index, leading Asia-Pacific

24th September 2024 – (Hong Kong) In the latest Global Financial Centres Index (GFCI) 36 Report published today by Z/Yen and the China Development Institute, Hong Kong has climbed to third place globally, advancing one position from the previous March edition. The city retains its status as the top financial centre in the Asia-Pacific region, with its overall score increasing by eight points—the largest gain among the top five financial centres.

A government spokesman highlighted the report’s affirmation of Hong Kong’s robust standing as a leading global financial hub. The city excelled in several competitive areas, including ‘business environment’, ‘human capital’, ‘infrastructure’, and ‘reputation’.

Notably, Hong Kong’s ranking in ‘investment management’ surged to first globally, while its positions in ‘insurance’, ‘banking’, and ‘professional services’ also saw significant improvements. Additionally, the report noted Hong Kong’s fintech standing, which rose five places to ninth, placing it among the top 10 fintech hubs worldwide.

The asset and wealth management sector in Hong Kong is experiencing substantial growth, with assets under management exceeding HK$31 trillion by the end of 2023—a 2% increase from the previous year. Net fund inflows reached HK$390 billion, reflecting a year-on-year increase of over 3.4 times. The family office sector continues to thrive, supported by the New Capital Investment Entrant Scheme, which has garnered over 550 applications since its launch in March, anticipated to bring over HK$16.5 billion in investments.

The spokesman reiterated Hong Kong’s role as an international financial centre, emphasising its ability to attract top financial institutions and talent while providing professional services and maintaining a deep capital market. The city’s regulatory framework aligns with major international standards, facilitating the free flow of information and capital.

Looking ahead, the government plans to foster high-quality development within the financial sector. Initiatives include enhancing market breadth and depth, establishing a listing regime for specialist technology companies, and promoting financial mutual access between the Mainland and Hong Kong.

In the realm of green finance, Hong Kong is set to adopt International Financial Reporting Standards for sustainability reporting and improve the regulatory framework for virtual assets, aiming to support the development of a sustainable Web3 ecosystem. Furthermore, the government is committed to nurturing talent through various internship and training programmes, ensuring a robust future workforce for the financial sector.

The GFCI Report, which has been released biannually since 2007, assessed 121 financial centres in GFCI 36, with Hong Kong achieving an overall rating of 749.