Global Financial Centres Index The Z/Yen Z/Yen Group Limited 90 Basinghall Street London EC2V 5AY United Kingdom tel: +44 (20) 7562-9562 www.longfinance.net Mark Yeandle FCIM MBA
Z/Yen The Z/Yen Special City of London s leading think-tank and research house Services projects, coaching/training, expertise on demand, research Sectors technology, finance, voluntary, professional services, outsourcing Ø British Computer Society IT Director of the Year for PropheZy and VizZy Ø DTI Smart Award for PropheZy Ø Sunday Times Book of the Week, Clean Business Cuisine Ø 1.9M Foresight Challenge Award for Financial aboratory visualising financial risk
Z/Yen Research Financial Centres The Z/Yen 2002-2005
The Z/Yen The GFCI - A Global Phenomenon
Responses used in GFCI 19 The Z/Yen Sector Number Banking 572 Finance 111 Government & Regulatory 101 Insurance 92 Investment 301 Professional Services 368 Trade AssociaDon 57 Trading 69 Other 239 Total 1,910 Region Number Western Europe 816 Asia/Pacific 529 North America 255 Middle East & Africa 136 N/A 63 Eastern Europe & Central Asia 63 LaDn America & the Caribbean 48 Total 1,910 Size of Organisa5on Number Fewer than 100 478 100 to 500 260 500 to 1,000 171 1,000 to 2,000 116 2,000 to 5,000 208 More than 5,000 677 Total 1910
Multi-Factor Financial Centres The Z/Yen Instrumental Factors R-Sq IF01 Office Occupancy Costs 0.5034 BE16 OECD Country Risk ClassificaDon 0.4966 RF11 Price Levels 0.4934 RF14 InnovaDon CiDes Global Index 0.4010 RF12 Global CiDes Index 0.4008 RF01 World CompeDDveness Scoreboard 0.3971 BE18 Financial Secrecy Index 0.3795 IF17 LogisDcs Performance Index 0.3766 RF02 Global CompeDDveness Index 0.3520 RF22 IESE cides in modon index 0.3289 HC17 Cost of Living City Rankings 0.3230 BE01 Business Environment Rankings 0.3180 IF02 Office Space Around the World 0.3111 RF17 Global Enabling Trade Report 0.3085 BE14 Banking Industry Country Risk Assessments 0.3005 RF21 City IniDaDves for Technology, InnovaDon and Entrepreneurship 0.2877 HC08 Top Tourism DesDnaDons 0.2524 BE20 City GDP Figures 0.2459 IF08 Quality of Roads 0.2447 RF05 FDI Confidence Index 0.2402 IF13 Metro Network Length 0.2383 RF13 Number of internadonal associadon meedngs 0.2343 HC11 Global Talent Index 0.2317
The Z/Yen The GFCI Process GFCI 19 uses 105 Instrumental Factors GFCI 19 uses 25,495 assessments from 2,520 respondents
Headline findings (1) The Z/Yen City GFCI 19 Rank GFCI 19 Ra5ng GFCI 18 Rank GFCI 18 Ra5ng Change in Rank Change in Ra5ng London 1 800 1 796-4 New York 2 792 2 788-4 Singapore 3 755 4 750 1 5 Hong Kong 4 753 3 755 1 2 Tokyo 5 728 5 725-3 Zurich 6 714 7 715 1 1 Washington DC 7 712 10 711 3 1 San Francisco 8 711 9 712 1 1 Boston 9 709 12 709 3 - Toronto 10 707 8 714 2 7 Chicago 11 706 11 710-4 Seoul 12 705 6 724 6 19 Dubai 13 699 16 704 3 5 Luxembourg 14 698 19 700 5 2 Geneva 15 694 13 707 2 13 Shanghai 16 693 21 698 5 5 Sydney 17 692 15 705 2 13 Frankfurt 18 689 14 706 4 17 Shenzhen 19 688 23 694 4 6 Osaka 20 687 20 699-12 Sao Paulo 43 639 31 672 12 33 Rio de Janeiro 44 637 35 666 9 29
The Z/Yen Headline Findings (2) The mean of the top five centres by region. North America and Western Europe are now behind Asia/Pacific. 800 750 700 650 600 550 500 450 400 350 GFCI 1 GFCI 2 GFCI 3 GFCI 4 GFCI 5 GFCI 6 GFCI 7 GFCI 8 GFCI 9 GFCI GFCI GFCI GFCI GFCI GFCI 10 11 12 13 14 15 Asia/Pacific Eastern Europe and Central Asia LaDn America & the Caribbean GFCI 16 GFCI 17 GFCI 18 GFCI 19 Middle East & Africa North America Western Europe
The Z/Yen Headline Findings (3) New York, London, Singapore and Hong Kong remain the four leading global financial centres. Tokyo, in fifth place, is 25 points behind Hong Kong. 850 New York / London Trend 800 750 700 650 Hong Kong / Singapore Trend 600 GFCI 1 GFCI 3 GFCI 5 GFCI 7 GFCI 9 GFCI 11 GFCI 13 GFCI 15 GFCI 17 GFCI 19 London New York Hong Kong Singapore Tokyo
The Z/Yen Headline Findings (4) Asian seems to have been flat-lining for the past three years. Singapore has climbed just ahead of Hong Kong. Seoul has fallen but remains in fourth place in the region. 800 750 700 650 600 550 500 450 400 Hong Kong Singapore Tokyo Seoul Shanghai
The Z/Yen Headline Findings (5) Sao Paulo remains the top Latin American centre in GFCI 19. Where should Santiago be? 700 650 600 550 500 450 400 Sao Paulo Buenos Aires Mexico City Rio de Janeiro
The Z/Yen Factors of Competitiveness Z/Yen Taxonomy Areas of Particular Concern in 2015/16
What s on People s Minds The Z/Yen Area of Compe55veness Number of Men5ons Main Issues Business Environment 936 Human Capital 831 TaxaDon 796 ReputaDon 714 Infrastructure 707 RegulaDon is more important than ever and needs to be clear and fair CorrupDon is even more high profile than before Centres becoming more compeddve in acracdng skilled people Developing centres - more awareness of a 'brain drain' and demographics Tax rules must be harmonised internadonally Tax should be transparent and reasonable - and seen to be reasonable Security, safety and human rights are becoming even more important Centres need to market themselves - a more compeddve marketplace Road transport is becoming an important issue in many centres Lack of direct flights into certain centres holds them back Financial Sector Development 609 More focus on the importance of the EU cluster to London Physical proximity sdll very important
Financial Centre - Generalities The Z/Yen Ø You can t be good at everything specialise? Ø You can t be an international centre without international people Ø Successful people want to live in successful cities Ø People want to live in cosmopolitan places Ø Reputation is vital and you can lose a good one overnight Ø Increase transparency wherever possible Ø Continue to demonstrate commitment to meeting international standards
The Z/Yen Discussion and Questions In the Spirit of Collaboration: A Chilean who helps England An English Man who helped Chile Participate in the GFCI yourself at: www.financialcentrefutures.net