New York boosts lead on London as world’s leading finance centre1 min read . Updated: 24 Nov 2014, 09:31 AM IST
New York was picked for the top spot by 59% of respondents, against 38% who named London, according to a Kinetic Partners survey
London: New York is extending its lead over London as the world’s most important financial centre as the City reels under a string of scandals and question marks over the UK’s continued membership of the European Union (EU).
New York was picked for the top spot by 59% of respondents, against 38% who named London, according to a Kinetic Partners survey of almost 300 finance professionals carried out for the consultancy’s 2015 Global Regulatory Outlook, published on Monday. New York went into the lead last year, when 49% named it as the preeminent financial centre and 44% said London.
“This shift from just two years ago is a testament to the resilience of the New York market," said Julian Korek, chief executive officer (CEO) of London-based Kinetic. “New York has proven that it can draw and maintain institutions that believe it is the best place to grow their businesses."
Financial institutions rigging benchmark indexes, at least £22 billion ($34.4 billion) paid by UK banks as restitution for misselling insurance and the populist tide flowing against EU membership and foreigners have combined to tarnish the UK’s image. The outcome of the Kinetic survey underlines the finding of a poll by Z/Yen Group Ltd in March, which showed New York replacing London as the world’s leading financial centre for the first time.
Kinetic’s survey shows opinions have reversed in the past two years. In 2012, 65% of respondents cited London as the leading financial centre and 31% said New York, according to the report.
The survey also shows that the centre of gravity of finance is shifting to China, with Shanghai named as the leading emerging financial center come 2019 by 53% of respondents, up from 45% in last year’s survey. Cities on the mainland such as Shanghai and Shenzen are “well positioned" to rob Hong Kong of its mantle as Asia’s leading financial centre, according to the report. Dubai was mentioned by 9% of respondents.
Kinetic surveyed 283 professionals globally in banking, asset management and support industries, of whom 118 were senior managers, according to the report.