Hong Kong Widens Lead Over Singapore as Asia’s Top Financial Centre, Report Shows
Hong Kong has solidified its position as Asia’s premier financial hub, outpacing its regional rival Singapore by a wider margin and bolstering its status on the global stage. According to the latest Global Financial Centres Index (GFCI) released on March 20, 2025, Hong Kong ranks third worldwide, closing the gap with top-ranked New York and significantly extending its lead ahead of Singapore, which holds fourth place globally.
Hong Kong’s Rising Strength in Key Financial Metrics
In the semi-annual report jointly published by the London-based think tank Z/Yen Group and the China Development Institute in Shenzhen, Hong Kong’s overall rating rose by 11 points. In contrast, Singapore advanced only three points. The London financial centre maintained second place with a 12-point increase, while almost all featured financial hubs showed improvement. Notably, Seoul moved into the top 10, improving from 11th position.
The comprehensive ranking assesses 119 global financial centres, based on 140 diverse factors supplemented by insights from nearly 5,000 respondents through questionnaires. These factors include areas such as business environment, infrastructure, human capital, financial sector development, and reputation.
Hong Kong’s notable gains were seen particularly in human capital, infrastructure, and financial sector development, where it placed second worldwide. Moreover, the city improved to third place globally in terms of business environment and reputation. The report highlighted Hong Kong’s dominance in investment management, insurance, and finance sectors, while it ranks third in global banking.
Government and Mainland Support Boost Financial Growth
The Hong Kong government attributed its success to strong support from mainland China, recent stock market reforms, and enhanced financial connectivity with the mainland. These advantages, together with focused promotions in asset and wealth management, underpin Hong Kong’s leading international financial centre status.
Following a brief period in which Singapore was ranked Asia’s top financial hub in September 2022, Hong Kong regained the crown last September. The city now continues to build momentum, fueled by a robust pipeline of initial public offerings (IPOs) expected to make it the world’s leading venue for IPO activity this year.
Financial Secretary Paul Chan Mo-po projected that IPOs in Hong Kong could raise between US$17 billion to US$20 billion in 2025, marking an 80% increase compared to last year.
Enhancements in Cross-Border Financial Access and Innovation
Early this year, the People’s Bank of China and the Hong Kong Monetary Authority agreed on measures to deepen cross-border financial access. These include improved settlement arrangements under Bond Connect and introducing an offshore yuan bond repurchase business, facilitating smoother financial flows between Hong Kong and mainland China.
On asset and wealth management, enhancements to the Wealth Management Connect scheme within the Guangdong-Hong Kong-Macau Greater Bay Area, Exchange-Traded Fund (ETF) Connect, and the Mainland-Hong Kong Mutual Recognition of Funds arrangement have further strengthened Hong Kong’s competitive edge.
Hong Kong also climbed impressively in fintech offerings, climbing to fourth place globally from ninth, surpassed only by New York, London, and Shenzhen. This rise underscores the city’s growing capabilities as a hub for financial technology innovation.
Looking Ahead: Policies and Upcoming Events
The government’s 2025 budget introduced initiatives aimed at promoting wealth management services, family offices, stock listings, and yuan-denominated transactions to further entrench Hong Kong as a global financial centre.
Plans are underway for new policy statements focusing on virtual asset development, expansion of the gold market, and establishing a commodity trading ecosystem to diversify Hong Kong’s financial services.
Reflecting its standing as a major financial hub, Hong Kong is set to host multiple finance conferences next week, positioning itself as a prime destination for affluent investors and global entrepreneurs.
Conclusion
Hong Kong’s strengthened position in the latest Global Financial Centres Index demonstrates its resilience and dynamic growth as a leading international financial centre. With continued support from the mainland, forward-thinking financial reforms, and ongoing technological innovations, Hong Kong is well placed to maintain and expand its influence in the global financial landscape.
This article originally appeared in the South China Morning Post (SCMP), a leading source of authoritative news on China and Asia.