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Social unrest was singled out as a key driver of a dented outlook, according to a survey by London-based think tank Z/Yen Group, which led the city’s ranking as a leading global financial center to drop to sixth place.
Hong Kong dropped three places to the new ranking in the biannual survey published in partnership with Shenzhen-based China Development Institute. Perhaps more illustrative than its ranking change is its rating change which posted a 34 point plunge – the highest of any of the top 50 financial centers in the survey.
Given the social unrest, brain drain would be expected and supply and demand for skilled labor would be diminished, said an unnamed respondent claiming to be a Hong Kong-based head of legal at an investment management firm.
The survey rates over 108 financial centers based on over 5,000 respondents and criteria covering a wide range of areas such as regulatory friendliness for business, level of corruption and effective infrastructure.
At the top, shuffles from several Asia-based financial centers were the prime drivers of ranking changes. New York and London retained the top and second spot, respectively, while Tokyo rose three rankings to reach third place. Shanghai also climbed one ranking to reach fourth place. Singapore rounded out the top five at fifth, dropping one ranking since the last survey in September.
Uncertainty about trade, [and] the economic impact of the Covid-19 pandemic has led to much more volatility in the index results than is normal, said Michael Mainelli, Z/Yen Group’s executive chairman, in a statement.
