According to a report by the City of London Corporation, the City of London is facing the possibility of losing its status as a leading financial center, as New York has caught up in the latest global finance rankings.
The study analyzed the performance of the world’s top financial centers based on 95 metrics, including innovation, business infrastructure, talent, skills, and regulation. The report showed that other financial hubs are growing at a faster rate than the Square Mile, with a key concern being the number of companies departing from the London stock market.
London received an overall competitiveness score of 60, up by one point from the previous year, but New York gained two points to equal London’s score. The declining number of international companies listed in London, as well as fewer international firms choosing to list there despite the listing rules’ changes, were highlighted in the report.
The City is losing its appeal as a financial center, with CRH and Arm announcing plans to leave the London stock market for New York.
Singapore ranked as the world’s third most competitive financial center, scoring 51, followed by Frankfurt with 46, Paris with 43, and Tokyo with 35. Chris Hayward, the policy chief at the City of London Corporation, warned that the UK’s competitive advantage is at risk and called for a long-term plan to stimulate growth in the financial and professional services sector. Despite better access to international markets than France, Japan, or the US, the UK is still facing the threat of losing its status as a global financial center.
