In this article, we discuss the Top 5 Global Financial Centers. If you want to read our detailed analysis of the importance of financial centers and the changing trends in the employment and corporate HQs in the U.S., go directly to Top 15 Global Financial Centers.
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5) Hong Kong
GFCI rating: 743
The market cap of the Hong Kong stock exchange: US$6.06 trillion (HK$47 trillion)
The world’s most densely populated city, Hong Kong holds many titles to its name. A former British colony, Hong Kong is one of the most important global financial centers in the world. Recent incidents such as China’s growing influence on Hong Kong’s government and political unrest have resulted in many problems for the business community and overall political stability. Still, Hong Kong remains a key center in our list of top 15 financial centers/cities of the world. It is a major capitalist economy with the second-highest number of billionaires and the 6th largest stock exchange in terms of market capitalization according to the World Federation of Exchanges. It has one of the most sophisticated and developed transportation infrastructures. Hong Kong’s transparent governance, as well as low tax rates, make it an ideal spot for businesses.
4) Tokyo
GFCI rating: 747
The market cap of the Tokyo stock exchange: US$5.6 trillion
From the ruins of World War 2, Japan rose to become one of the major economies of the world. Today, its capital, Tokyo, serves as one of the most strategically important global financial centers in the world. Tokyo stock exchange is the 4th largest in the world in terms of market capitalization and a total of 2,292 companies are listed in it. Tokyo is the largest urban economy by GDP, and the most populous city in the world with more than 37.393 million residents. It hosts 36 of the Fortune 500 companies and is a center of finance, research, and development.
3) Shanghai
GFCI rating: 748
The market cap of the Shanghai stock exchange: US$6.98 trillion
Classified as Alpha+ (global first tier) city, Shanghai is one of the most advanced cities in the world and serving as the epicenter of China’s success. It is the third most populous city in the world and ranks as the third city hosting most billionaires. Shanghai is a global center for finance, research, manufacturing, and its port is the world’s busiest. Shanghai stock exchange is the third-largest stock exchange in terms of market capitalization and the city ranks 3rd on the Global financial centers index (GFCI). Besides being one of the top global financial centers, some of the most prestigious and highly-ranked tertiary education institutes are in Shanghai. Shanghai world financial center is a landmark building of the city along with the supertall Shanghai Tower and Jin Mao Tower.
2) London
GFCI rating: 766
London stock exchange market capitalization: US$4.59 trillion
London holds immense importance for the historical genesis of politics and economy. Standing on the River Thames, London has been an important settlement for humanity for two millennia and served as the global financial epicenter before being dethroned by New York in the early 20th century. London has often traded places with New York in global lists of top financial centers of the world. It hosts the London Stock Exchange, one of the oldest stock exchanges in the world. More than 2600 local and global companies are listed in it. It has one of the most skilled labor forces available on the planet, with a very robust and developed infrastructure to support economic activity on a massive scale. Besides serving as the headquarters of multi-national corporations, London hosts some of the most important monuments of British history and culture. Toyota Motor Corporation (LON: TYT), Unilever Plc (LON: ULVR), and Royal Dutch Shell (LON: RDSA) are some of the biggest companies trading on LSE.
1) New York City
GFCI rating: 770
Stock exchange market capitalization: US$32.5 trillion (NYSE & Nasdaq combined)
Topping the list of top 15 financial centers/cities of the world is New York City. Home to 73 Fortune 500 names, companies like JPMorgan (NYSE: JPM), Morgan Stanley (NYSE: MS), Goldman Sachs (NYSE: GS), Verizon Communications (NYSE: VZ) , JPMorgan, Morgan Stanley, Citigroup and several other big names have offices in the city.
The famous Wall street that is in the financial district of lower Manhattan houses NYSE and Nasdaq which are the largest stock exchanges in the world in terms of market capitalization. New York stock exchange is worth more than $25 trillion whereas Nasdaq, which primarily lists tech stocks, is worth $7.5 trillion. NYC’s infrastructure and strategic position make it unique for conducting business.
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