The British capital has lost significant ground in the first index of Global Financial Centers published since the United Kingdom completed its exit from the European Union, barely remaining on the 2nd place in the top.
London’s rating has dropped 23 points since the previous edition, compiled by the Z / Yen think tank, which was launched in September. London is now just one point ahead of Shanghai, and Hong Kong and Singapore are not far behind.
The ranking is produced by combining the assessments of financial professionals with quantitative benchmarks provided by third parties, including the World Bank, the Organization for Economic Co-operation and Development and the United Nations.
Trade in billions of dollars worth of stocks and financial instruments has already disappeared from London since the end of Brexit on January 1, moving abroad to cities, including Amsterdam, Paris and Frankfurt, home to the European Central Bank.
The Frankfurt rating rose 12 points in the most recent Z / Yen index, while Milan rose 28 points. Paris and Amsterdam have seen their ratings weaken.
The threat of many lost businesses lies across London, which is home to dozens of large banks, hedge funds and insurance companies around the world.
Financial services were not included in the UK-EU trade agreement reached by British Prime Minister Boris Johnson in December, putting Brussels in a position to decide how much UK companies will have access to the vast EU market.
“I don’t predict the end of London as a major financial center, but I think it is in the worst precarious state it has been in a long time and cannot be satisfied,” said Alasdair Haynes, CEO of Aquis Exchange, a stock exchange rival. from London and the CBOE, told CNN Business in February.
London remains an attraction for talent. And many financial institutions hope to bring people back to the office as soon as possible.