Commentary: Were warnings of Hong Kong’s demise as a financial hub exaggerated?

LONDON: Hong Kong now ranks as the third best financial centre in the world, according to the 2024 edition of the Global Financial Centres Index. The city has regained the title of Asia’s top financial hub from Singapore.

This ranking defies sceptics who believe Hong Kong is over , given the city was battered by the pandemic and an exodus of talent in recent years.

Singapore was able to take advantage and claimed Asia’s top spot in 2022 and 2023. So how was Hong Kong able to retake the crown?

First is the stability of its financial policies. As a special administrative region of China, Hong Kong benefits from strong support from the central government, and its highly business-friendly regulations are appealing to foreign investors. According to government data, Hong Kong brought in HK$38.3 billion (US$4.9 billion) of investment in the first half of 2024, a year-on-year increase of 6 per cent.

In recent years, as China has increasingly prioritised the development of the Greater Bay Area, economic ties between Hong Kong and mainland China have strengthened, creating a favourable environment for the city’s financial market.

Second is Hong Kong's well-established financial infrastructure. Its robust banking system and deep capital market continues to be a major draw for businesses. Foreign firms have also remained confident in Hong Kong's legal and regulatory system for global capital transactions, arbitration and other types of transactions.

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