Hong Kong has dethroned Singapore to become Asia's top financial centre for the first time in two years, according to the latest edition of the semi-annual Global Financial Centres Index released on Tuesday.
Globally, Hong Kong ranked third behind New York and London, with Singapore and San Francisco rounding off the top five, according to the study of 121 cities compiled by the China Development Institute in Shenzhen and London think tank Z/Yen Partners.
Hong Kong lost the top spot in Asia to Singapore in the September 2022 ranking, after the Southeast Asian city relaxed travel restrictions in April that year. Hong Kong continued to maintain curbs until January 2023.
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A strong stock market and new listings have lifted the city's status as the top financial centre in the region.
"The Global Financial Centres Index ranked Hong Kong high in many areas, ranging from business environment to fintech and banking to wealth management," Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said on the sidelines of the 5th Belt and Road Initiative Tax Administration Cooperation Forum.
The index shows Hong Kong has made big improvements in many areas as an international financial centre, he added.
Hui said the improved stock market sentiment coupled with the China Securities Regulatory Commission's announcement in April to support leading mainland companies to list in Hong Kong, have boosted the initial public offering market in Hong Kong.
Midea Group, the world's largest maker of home appliances, rose a solid 8 per cent on its first day of trading last week, after raising HK$31 billion (US$4 billion) from its IPO. It was the city's biggest listing since JD Logistics' US$3.64 billion offering in 2021.
The US Federal Reserve lowered its key interest rate by a half percentage point last Thursday in an aggressive start to a monetary loosening cycle, while Hong Kong commercial banks cut their prime and deposit rates by a quarter-point. These, together with a range of measures announced by China on Tuesday, have provided a further boost to the stock market.
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