Asian financial centers are overtaking European?

 According to the Global Financial Centers Index compiled by z/Yen Group the most competitive financial centers in the world are London and New York. But as the economic crisis burst out many Asian cities that were significantly behind have caught up with Hong Kong and Singapore leading the lists.

The index shows that London remains "the most competitive city in the world”. The UK capital has held the title for the last three years, with New York close behind in second.

The cities were evaluated in categories such as office rent, airport satisfaction and tax rates.

Meantime, as Western nations are making numerous efforts to bring better regulation to address the economic downturn Asian cities are gaining more popularity.

“If one looks back about a year, on our scale of a thousand: London, New York were ahead of all the other centers by 80, 90 points. That gap has reduced significantly, the Asian centers have all come into their own,” Mark Yeandle, director at z/Yen said. 

“You’ve got Hong Kong, Singapore and now they’re only 30 or 40 points behind,” he said. 

Along with fears about regulation, the main concerns highlighted by the study related to hiring and firing, Yeandle said.

The availability of skilled people and the flexibility of the job market are key, he said. That’s why European cities like Paris and Frankfurt have struggled to gain traction on the list, he added. 

Other fast-growing Asian centers, including Shanghai, Beijing and Shenzhen also posted large rises. Meanwhile, Dubai fell from the top of the “up-and-comers” list.