The rating of the largest financial centres in the world

The rating of the largest financial centres

When you select any of the goods or services the majority of us chooses a few manufacturers/suppliers, and then compares them with each other. To help you choose there are different ratings, which are particularly popular in the financial field.

Twice a year the British consulting firm Z/Yen Group makes the ranking of the largest financial regions of the world (Global Financial Centres Index), taking into account:

  • the business environment of the city;
  • financial sector development;
  • the infrastructure of the metropolis;
  • human capital;
  • surveys of financiers.

Below you can see the ranking of the largest financial capitals in 2016, where every businessman wants to buy a financial company.

  1. Toronto

The largest city in Canada appeared on 10-th position, but the presence of the metropolis in this list speaks for itself. Financial district, located in the heart of downtown Toronto, the most densely lined with numerous banks, insurance, brokerage, legal and other firms as well as established the headquarters of the companies from around the world. All this allows Toronto every year to appear in the top most influential financial centres in the world.

  1. Boston

A major role in the economy of the capital of the state of Massachusetts in the U.S. play  financial, banking and insurance sectors. So, exactly here are located the headquarters of the legendary fin. the company Fidelity Investments, Sovereign Bank and State Street Corporation. Also Boston is known as one of America’s largest centers of publishing activity.

  1. san-franciscoSan Francisco, CA

Previously inconspicuous San Francisco, very quickly lifted the economy after the appearance in the South of Silicon valley which requires the involvement of highly skilled professionals. Also this region is home to the biotechnological and biomedical research centers, which allow to attract considerable investments into the industry.

  1. Washington

Washington’s economy is based primarily on the provision of municipal services and employment in public administration. Because of this, many companies and organizations are concentrating their headquarters in Washington or its vicinity, for maximum proximity to the Federal government, and opportunities to lobby their interests.

The most prominent participants in the financial life of Washington are the two largest companies by revenue:

  • the U.S. postal service with a turnover of $68 billion;
  • mortgage agency Fannie Mae with a turnover of $29 billion.
  1. Zurich

Switzerland and Zurich in particular is associated around the world with banks and financial momentum, as this country has successfully passed the numerous storms of the economic crisis, showing itself in a favorable light compared to other financial giants. This region is the safest place to store money and with flexible tax legislation, which certainly attracts businessmen from all over the world.

The financial sector, indeed, one of the most profitable in the economy of Switzerland, so 20% of jobs in the country are concentrated there. Zurich provides employment in the monetary sector for more than 200 thousand people.

In this rating one of the main financial centers of modernity stands on 6th place.

  1. Tokyo

The capital of Japan is not concedes to new York and London in the volume of currency-exchange operations, the number of types of security papers which are quoted on the stock exchange, and the amount of security papers sales. However, the economy of the East capital has its weaknesses, therefore, contrary to the usual, occupies the 5th position in the list of the largest monetary centers in the world.

Buy a financial company in Tokyo is a dream of many businessmen, which is very difficult to implement due to high competition and exorbitant prices for ready business.

  1. Hong Kong

China is ahead of Japan on one step, taking away the primacy because of the free market, low taxes and a state policy of non-intervention in the economy.

Hong Kong continues to be the main financial and commercial centre of Asia and the world with the highest concentration of headquarters in the Asia-Pacific region.

Hong Kong is the most rich city of the Republic of China by GDP per capita and gross city product.

  1. Singapore

Singapore ousted from the number of habitual leaders Tokyo, seeding 3rd place. The level of development of the economy of Singapore is very similar to Hong Kong, however, experts have identified its position above China and Japan.

In fact, Singapore is a highly developed country with market economy and low taxation, in which not last role is played by transnational corporations. A distinctive feature of this city-state is that it sets only 5 taxes, so to buy a financial company in Singapore is not averse to many large global investors.

  1. New York

New York with its legendary wall street, according to tradition, one of the three major financial regions of the planet, which at all times attracted foreign direct investment with its largest and most liquid stock markets.

  • In new York placed the main offices of these financial monstrosities like Citigroup, American International Group, Morgan Stanley, Merrill Lynch, Goldman Sachs Group, etc.;
  • Also as a place of leadership concentration New York has chosen non-financial corporations Pfizer, Verizon Communications, News Corp., Alcoa, Colgate-Palmolive, etc.;
  • In addition, there are New York stock and commodity exchanges, NASDAQ and American stock exchange.
  1. LondonLondon

Thanks to its liberal legislation, the British capital is deservedly considers itself a key financial center in the world, because

  • In London concentrates 70% of the secondary bond market and almost half of the derivatives market;
  • It is the largest centre of foreign exchange trading and the London market is growing much faster than new York with its 8% growth;
  • From London managed almost 80% of European hedge funds;
  • Almost 80% of investment banking operations pass through the British capital.

Summing up, say, that the three actual leaders annually appears in the top financial centers, but 2016 has shown the ability of Singapore to expel from the third place Tokyo, but new York and London continue to hold the position.

Most likely, investors who want to buy a financial company in the centre of the perspective, will change the view toward the city-state of Singapore, but this, of course, depends on many individual factors. We can only suggest you to study the market before entering into any financial transactions to get (or build) a truly successful business.