Shanghai Retains Third Place in Global Financial Centers Index
Duan Siyu
DATE:  Mar 18 2021
/ SOURCE:  Yicai
Shanghai Retains Third Place in Global Financial Centers Index Shanghai Retains Third Place in Global Financial Centers Index

(Yicai Global) March 18 -- Shanghai has kept its ranking as the third best financial center in the world, confirming the Chinese city’s international appeal during the Covid-19 pandemic, according to a new survey released yesterday.

Shanghai closed the gap with London, which came second after New York, to one point from 18 points last year, according to the Global Financial Centers Index compiled by London-based thinktank Z/Yen Group and the China Development Institute in Shenzhen.

Hong Kong rose to fourth place from fifth, according to this year’s first index, which has been released biannually since 2015.

The ranking shows that Shanghai has not only consolidated its status as a leading international financial center, especially as one of the top financial centers in developing countries, but also has laid a good foundation as a fintech leader in the new era of globalization and digitalization, Ben Shenglin, dean of the International Business School and Academy of Internet Finance of Zhejiang University, told Yicai Global.

Shanghai scored particularly well in terms of overall city strengths such as business environment, human resources, infrastructure, financial development and international reputation, as well as in segments such as banking, investment management, insurance, professional services, financial supervision, financing, fintech and trade.

Proving that it is the city with the most advanced and open financial market system in China, Shanghai came second in the fintech sub-index, behind New York, and fifth in investment management, after New York, London, Hong Kong and Singapore.

Shanghai continues to add new offerings to its capital market offerings and more crude oil futures, treasury bond futures, stock index futures, stock index options, gold exchange-traded funds, inter-bank deposit certificates and other important financial products continue to emerge.

The city’s financial markets had a turnover of CNY2.28 quadrillion (USD350.4 trillion) last year, nearly six times that of 2010. The world’s top 10 asset managers all have a base in Shanghai. Twenty nine of the 32 wholly foreign-owned private fund managers in China are in Shanghai.

Moving Forward

To continue to consolidate its position as a global financial hub, Shanghai should push for further financial reforms in its Lingang New Area, part of the city’s free trade zone, to bring more innovation to its offshore financial services, said Zhu Ning, deputy dean of the Shanghai Advanced Institute of Finance of Shanghai Jiaotong University.

It should also continue to promote the internationalization of the Chinese yuan, the opening up of its capital markets, as well as the construction of a multi-level capital market development mechanism, especially the development of the bond market, Zhu said.

“Digital transformation requires the innovative reconstruction of financial infrastructure, including markets, technology and supervision. Shanghai should support more reform in these areas in the future,” Ben said.

Editor: Kim Taylor

Follow Yicai Global on
Keywords:   Shanghai,GFCI 29,Financial Index