Source:  The Financial Times                             Date: 11 April, 2011

London, New York and Hong Kong have solidified their positions as the world’s top three cities for banking and other financial services, with London retaining its slight lead over the other two cities, according to the latest Global Financial Centres Index. The twice-yearly ranking of 75 world cities by Z/Yen group, the think-tank, is based on surveys of industry professionals and objective factors such as office rental rates, airport satisfaction and transport. Sponsored by the Qatar Financial Centre Authority, the GFCI is a closely watched barometer within the financial services sector.

London has led every survey, but New York and more recently Hong Kong have slowly closed the gap. In the ninth report, released on Wednesday, London has 775 points to New York’s 769 and Hong Kong’s 759. However, Singapore, which had been closing the gap in previous surveys, dropped six points to 722. Overall, sentiment is falling – 44 centers lost points, versus 25 gainers.

The survey reflected the growing interest in Asia – Seoul leapt 25 points and eight places to enter the top 20 for the first time, and there are now eight Asian cities in the top 20, up from three four years ago. Paris, meanwhile, lost eight points and fell to 20th place, and offshore centers such as Jersey and the Cayman Islands continued their slide.

Mr. Mark Yeandle, the Z/Yen associate director who runs the survey, said he believed that London and Hong Kong would hold on to their primacy. “What distinguishes the top centers is their ability to attract the dealmakers and people who add value. The other centers are rising because of the Chinese economy. It’s going to be a real struggle to attract the really high fliers,” he said.

This edition of the GFCI was the first to look at how the various cities are perceived by different-sized businesses. While New York did best among people at companies with 2,000 or more employees, London was top among smaller enterprises with fewer than 500 employees, such as boutique advisory and professional services firms and hedge fund manager.