Los Angeles tops Shanghai as one of the biggest financial centers in the world. Here are the top 10— and 5 are in the U.S. (2024)
Chris Morris
·1 min read
Los Angeles is already the center of the entertainment world. Now it’s taking on a bigger role in the financial universe.
The California city has moved up to number six on the Global Financial Centres Index (GFCI), a list of the world’s top financial centers, topping Shanghai for the first time and moving the Chinese city down a notch.
The list, assembled by think tanks Z/Yen Partners and the China Development Institute, looks at 120 financial centers around the world, ranking them based on an online questionnaire from thousands of professionals in the industry.
New York, not surprisingly, once again topped the list (as it has been since 2018) and London took the number two spot. Singapore once again ranked third, topping Hong Kong.
There was, however, a fair bit of upheaval in the most recent rankings. Chicago, Boston, and Seoul entered the top 10, replacing Paris, Shenzhen, and Beijing. And, while they failed to make the top 10, Atlanta and San Diego both rose more than 10 places in the rankings.
“While there is considerable variation across centres, the index suggests that confidence in financial centres and the world economy remains high, with a recognition that inflation levels are falling and economic growth generally secure, even with the instability caused by the continuing war in Ukraine,” Dhanesswurnath Thakoor, CEO of FSC Mauritius, wrote in the report’s foreward.
Here’s how the Top 10 shook out, along with their ranking in last year’s list.
These important cities employ a large number of financial professionals and are home to stock exchanges and corporate headquarters for investment banks. The top global financial cities are New York City, London, Singapore, Hong Kong, and San Francisco, as determined by the GFCI 34 rankings.
The home of Hollywood has overtaken China's commercial capital in a fresh ranking of the world's top financial centers. Los Angeles took sixth spot on the Global Financial Centres Index (GFCI), pushing Shanghai into seventh place. Meanwhile, Chicago and Boston broke into the top 10, edging out Beijing and Shenzhen.
New York City remains the largest centre for trading in public equity and debt capital markets, driven in part by the size and financial development of the U.S. economy.
The dominance of New York, London, and Singapore among the top global financial centers reflects their historical significance, strategic geographical positions, and adaptability to modern financial dynamics. New York has its world-renowned stock exchanges and concentration of major banking institutions.
China has three cities in the Top 10, with Hong Kong (129,500 millionaires), Beijing (128,200), and Shanghai (127,200) taking 7th, 8th, and 9th places, respectively.
The Shanghai World Financial Center is a 492 m (1,614 ft) high skyscraper in Shanghai, China. It has 101 storeys and is currently the third tallest building in the world, because Burj Khalifa is the tallest. Inside the building, there are offices, hotels and shopping malls.
New York is the economic capital of the world because many of the largest companies in the world, specifically financial institutions, are headquartered there.
A Hong Kong footbridge decorated for China's National Day: Much of the foreign direct investment headed into or out of mainland China goes through the city. Carlos Casanova is senior Asia economist at Union Bancaire Privee in Hong Kong.
Shanghai takes the first spot among 36 Chinese financial centers, followed by Beijing and Shenzhen, according to the 14th China financial center index released on Dec 28.
Introduction: My name is Nathanael Baumbach, I am a fantastic, nice, victorious, brave, healthy, cute, glorious person who loves writing and wants to share my knowledge and understanding with you.
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