The Global Financial Centers Index (GFCI), the world's first index of competitiveness for financial centers around the globe, reveals that London is the financial hub of the world, followed by New York, Hong Kong and Singapore. Shanghai ranked 24th and Beijing 36th.

The report, published by the City of London, ranks for the first time the competitiveness of 46 of the world's biggest financial centers. Cities were ranked according to human resources, the business environment, market access, infrastructure and comprehensive competitiveness.

The report found that London and New York are the only truly global financial centers, providing a broad range of services for global trade. Hong Kong has the strictest legal system and most experienced personnel, and is already the most important financial center in the Asian region. Provided the Asian financial market doesn't experience any major fluctuations, Hong Kong is likely to become another global financial center.

Owing to the shortage of human resources, inadequate market controls and problems in the enterprise environment, neither Shanghai, the financial center of mainland China, nor Tokyo, which was ranked ninth globally, were able to compete with Hong Kong.

The report on the Index found that the primary factors in financial competitiveness were changing. Two years ago, human resources and technology were considered the primary factors in competitiveness; this year, the finance industry is more interested in policy controls and the tax environment.

A national expert on finance confirmed recently that Shanghai was the financial center of the mainland, but cautioned that there was a long way to go before it became competitive as a global financial center.

The Global Financial Centers Index was compiled by British company, Z/Yen Research, and will be published every two years.

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