Hong Kong poised to top New York, London in finance-hub ranking: GFCI creator
An Asian city will eventually overtake London and New York as the world’s leading financial centre, with Hong Kong well placed to compete for the top spot given its legal predictability and low tax burden, according to the creator of a closely watched ranking of financial hubs. “It’s going to happen because it’s so tight,” said Michael Mainelli, chairman of London-based think tank Z/Yen Group, in…
Michael Mainelli, chairman of the think tank Z/Yen Group, predicts that Hong Kong will eventually surpass London and New York to become the world's leading financial hub. In the latest Global Financial Centres Index, Hong Kong ranked third, trailing London by one point and New York by two. Mainelli attributes this narrowing gap to a broader structural shift towards Asia, which now accounts for roughly 40% of global finance.
He believes Hong Kong's underlying framework is unusually resilient due to its common law system, judicial independence, and low tax burden. The city's fiscal discipline, with state expenditure as a share of GDP at around 15%, also gives it a durable edge over other jurisdictions. While Mainelli acknowledges concerns about the growing influence of mainland Chinese hubs like Shanghai and Shenzhen, he argues that these cities' growth only reinforces Hong Kong's role as an open gateway to mainland capital.
The city is investing in gold-trading infrastructure, including a central clearing and settlement system, which will benefit Hong Kong in the long run. The main long-term challenge for Hong Kong, according to Mainelli, is balancing mainland integration with global accessibility while preserving openness that businesses value.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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