Danny McCance 12 Sep 2018 01:17pm

London loses top spot as financial centre ahead of Brexit

The UK capital has lost its long-running lead, with uncertainty over Brexit triggering a decline in optimism

New York has replaced London as the top financial centre, which has remained just ahead of Hong Kong in the top three, according to the 24th Global Financial Centres Index from Z/Yen.

London dropped eight points since March to take it to 786 of a possible 1,000, while New York remained two points ahead after only dropping five points.

New York has regained 32 points since this time last year where it plummeted down the rankings due to US trade fears at the time.

Meanwhile, Hong Kong, which sits just three points behind London, maintained third place, while Shanghai gained 25 points to replace Tokyo in the top five.

Zurich and Frankfurt were the only other European cities to make it into the top 10, climbing seven and 10 places respectively.

The report noted that “these centres may be the main beneficiaries of the uncertainty caused by Brexit” as they could attract business being shifted away from the UK.

Despite research last week suggesting that the US is now the top financial hub globally, New York was the only city to make the top 10 list, after Boston and San Francisco dropped to 13th and 14th respectively.

The top 10 financial centres are as follows:

1) New York

2) London

3) Hong Kong

4) Singapore

5) Shanghai

6) Tokyo

7) Sydney

8) Beijing

9) Zurich

10) Frankfurt

The Global Financial Centres Index increased from 96 to 100 cities in this edition, following the inclusion of Cape Town, Gujarat, Hangzhou and Sofia, while 10 more “associate centres” await potential inclusion.