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According to research published on Thursday by the City of London, the UK capital has lost its lead as the world’s top financial centre, owing in part to the country’s exit from the EU.
According to new data, London and New York now share first place as the world’s leading financial centres. According to data from the City of London’s governing body, this is the first year in which the UK capital has not been the clear leader, as other financial centres have grown faster.
Financial executives have expressed concerns about London’s competitiveness, claiming that the city risks losing its top spot as a result of Brexit, which has prompted a number of companies to relocate their headquarters to the EU.
“The United Kingdom continues to be one of the most open and global financial centres, with better access to international markets than the United States, France, or Japan.” However, our competitive advantage is under threat,” said Chris Hayward, policy chairman of the City of London Corporation.
According to data, “the number of international companies listed in London is falling,” and fewer international companies are choosing to list in London over New York.
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Arm, a major chip designer owned by Japan’s SoftBank and Dublin-based building materials giant CRH, recently announced its intention to leave the UK and seek a listing in the United States.
“The announcement demonstrates the need for the UK to make rapid progress in its regulatory and market reform agenda, including addressing the amount of risk capital available to drive growth,” the London Stock Exchange’s chief executive, Julia Hoggett, said earlier this month.
In response, the British government has outlined a number of initiatives to reform the UK listing market, as well as pushed for deregulation in banking and insurance to encourage new business.
However, there are concerns that the US is more appealing for businesses looking to expand due to a less restrictive business culture.
According to the study, London has an overall competitiveness score of 60, up from 59 in 2022. New York boosted its score by two points to tie London. Singapore finished third with 51 points, followed by Frankfurt with 46, Paris with 43, and Tokyo with 35.