Did you know These Are the Biggest Financial Centers in the World
Certain cities have served as financial hubs since the earliest days of capitalism, and a new report by Z/Yen,
a consultancy group, have revealed which cities sit at the top of the
rankings. Understanding their positions is essential because of the fact
that this is the sort of thing that could potentially end up
determining where global investments will be headed.
These
financial centers were judged based on a variety of factors such as
development of the sector, the overall environment for businesses, the
amount of human capital available, financial infrastructure as well as
the city’s reputation on the world stage. With all of that having been
said and now out of the way, it is important to note that New York City
is still at the top spot, covering around 40% of the market cap of the
biggest companies all around the globe which amounts to a whopping $46
trillion worth of stocks.
5 other major financial hubs exist in the US, including San Francisco at
number 5 thanks to the presence of Silicon Valley, with its fellow
Californian city of Los Angeles going from 7th to 6th place this year.
Chicago jumped up four places to reach number 8, Boston went up five
places to reach number 9.
Outside of North America, London is the
second most important financial center in the world. Brexit has dulled
its edge somewhat, but in spite of the fact that this is the case, it
still continues to hold onto the number 2 spot, although this might
change in subsequent years. Elsewhere in Europe, Paris has seen its
prestige decline leading to a four place drop that saw it exit the top
ten list and reach the 14th place on this list.
The third and
fourth most important financial hubs happened to be in East Asia, more
specifically Singapore in third place and Hong Kong in fourth place.
Shanghai fell by one place but is still in the top 10 with its number 7
ranking, whereas Beijing sank by five places and is now at number 13
with all things having been considered and taken into account.
The only country outside of Europe, North America and Asia to make the cut was Australia, where Melbourne serves as a financial hub and reaches 15th place in the world after a 2 place jump.
Infographic via VisualCapitalist