Singapore has dislodged Hong Kong in a global ranking of financial centers.
Hong Kong slid to fourth place, slightly behind Singapore, because of concerns over political and economic developments in mainland China, the Hong Kong Economic Journal reports, citing City of London Corp. think tank Z/Yen Group Ltd.
The narrow gap between the two rivals shows tightening competition for financial hub status in the region, a Hong Kong government official said.
He said the government will step up promotion of Hong Kong’s financial services industry overseas to attract more investors.
London kept its No. 1 ranking, ahead of New York, and Tokyo took fifth place.
Shanghai was the best placed mainland city, climbing five notches to 16th, while Shenzhen leapfrogged to 19th from 23rd.
Of 102 cities surveyed worldwide, 86 made the list on the basis of their business environment, financial development, infrastructure, human capital, reputation and other factors.
The survey polled 2,520 professionals in the financial services industry.
Hong Kong scored 753 points, down two points from the last survey in September, its lowest since 2012.
Hong Kong has been too focused on the stock market at the expense of other sectors such as bonds, commodities and currencies, E Zhihuan (鄂志寰), deputy general manager of development and planning of Bank of China (Hong Kong) Ltd., said.
Hong Kong has nothing to worry about given its robust banking, renminbi and initial public offering industries, said Billy Mak, an associate professor in Baptist University.
Raymond So, dean of Hang Seng Management College business school, said Hong Kong continues to offer more business opportunities than Singapore but it is being shaken by political disputes and a slowing Chinese economy.
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