New York is extending its lead over London as the world’s most important financial center as the City reels under a string of scandals and question marks over the U.K.’s continued membership of the European Union.
New York was picked for the top spot by 59 percent of respondents, against 38 percent 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 Monday.
New York went into the lead last year, when 49 percent named it as the preeminent financial center and 44 percent 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 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 pounds ($34.4 billion) paid by U.K. banks as restitution for misselling insurance and the populist tide flowing against EU membership and foreigners have combined to tarnish the U.K.’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 center for the first time.
Kinetic’s survey shows opinions have reversed in the past two years. In 2012, 65 percent of respondents cited London as the leading financial center and 31 percent said New York, according to the report.
The survey also shows that the center of gravity of finance is shifting to China, with Shanghai named as the leading emerging financial center come 2019 by 53 percent of respondents, up from 45 percent 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 center, according to the report. Dubai was mentioned by 9 percent of respondents.
Kinetic surveyed 283 professionals globally in banking, asset management and support industries, of whom 118 were senior managers, according to the report.
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