The Strategist

Top 10 largest financial hubs of the world

04/19/2019 - 08:34

According to the 25th annual report of the Global Financial Centers Index, New York has become the largest financial hub in the world.

The index ranks cities by parameters such as the business climate, human capital, infrastructure, financial sector development and reputation.

10. Frankfurt am Main

Frankfurt am Main is the fifth largest city in Germany with a population of 732 thousand people. Frankfurt is considered the world's "alpha city" and is the center of commerce, culture, education, tourism and transportation hub. The city hosts the European Central Bank, the Federal Bank of Germany, the Frankfurt Stock Exchange and the Frankfurt Fair.

Frankfurt Airport is one of the busiest international airports, and Central Station and the Frankfurt Automobile Interchange is one of the busiest highways in continental Europe. Frankfurt is the only German city included in the twenty alpha cities in the world.

9. Beijing

Beijing is the capital of China. It is the largest rail and road junction and one of the country's main hubs. In addition, Beijing is the political, educational and cultural center of the PRC, while Shanghai and Hong Kong are considered the main economic centers. 

8. Zurich

Zurich is the largest financial center in Switzerland: it hosts insurance companies and banks, including international UBS and Credit Suisse, the Swiss stock exchange and headquarters of the central bank of Switzerland. This is also a large research center: there are universities and a higher technical school. All this makes Zurich one of the main global financial centers. 

7. Toronto

Toronto is the largest city in Canada, the administrative center of the province of Ontario. Toronto is part of the Golden Horseshoe, a densely populated region around the western part of Lake Ontario with a population of about 7 million people. Approximately one third of the total Canadian population lives within a radius of 500 km from Toronto. About one sixth of all jobs in Canada are within the city limits. The city of Toronto is also known as the economic engine of Canada, is considered one of the leading megacities of the world and has a lot of weight both in the region and at the national and international level.

6. Tokyo

Tokyo is the capital of Japan, its administrative, financial, industrial and political center. This is the largest urban economy in the world. Tokyo is the main economic center of Japan. The city is a major international financial center and headquarters of a number of the world's largest investment banks and insurance companies. It also acts as a hub for the transportation, publishing and broadcasting industry in Japan. The Tokyo Stock Exchange of Japan is the largest stock exchange, as well as the second largest market capitalization in the world and the fourth largest share in turnover.

5. Shanghai

Shanghai is the largest city in China and the world in terms of population. Shanghai is the financial and commercial center of China. The Shanghai Stock Exchange is a modern and reputable marketplace. The Shanghai Futures Exchange is the world's leading commodity exchanges in terms of trading volume in natural rubber and copper futures contracts. The Shanghai Gold Exchange is China's largest precious metals trading market.

4. Singapore

Singapore is a highly developed country with a market economy and low taxation, in which transnational corporations play an important role. Singapore is attractive for investors because of low tax rates. There are a total of 5 taxes, of which one is the income tax, one is the payroll tax. The total tax rate is 27.1%. Singapore is ranked as one of the "East Asian tigers" for the rapid economic leap to the level of developed countries. The country has developed electronics manufacturing, shipbuilding, financial services sector.

3. Hong Kong

The economy of Hong Kong is based on a low taxation, free market and non-interference. Hong Kong is considered an offshore, and it does not charge any duties on imports. Excise taxes are levied on only 4 types of goods.

2. London

London is the capital and largest city of the United Kingdom of Great Britain and Northern Ireland. It belongs to the global cities of the highest rank and the world's leading financial centers. Its economy makes up one fifth of the country's economy. London is one of the most attractive cities for investment, and its jurisdiction has the largest number of international trading companies and individuals with ultra-large net capital among all cities in the world.

1. New York

New York is the largest city in the United States, part of one of the largest metropolitan areas of the world. New York is an important global financial, political, economic and cultural center. The city is the most important financial center of the country and the world; at the end of 2008, financial institutions located in the city controlled up to 40% of world finance.