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Z/Yen Group Limited 90 Basinghall Street London EC2V 5AY United Kingdom tel: +44 (20) 7562-9562 www.longfinance.net

Global Financial Centres Index

Mark Yeandle FCIM MBA

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2002 - 2005

Z/Yen Research Financial Centres

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The GFCI - A Global Phenomenon

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Responses used in GFCI 19

Region NumberWesternEurope 816Asia/Pacific 529NorthAmerica 255MiddleEast&Africa 136N/A 63EasternEurope&CentralAsia 63LaDnAmerica&theCaribbean 48Total 1,910

Sector NumberBanking 572Finance 111Government&Regulatory 101Insurance 92Investment 301ProfessionalServices 368TradeAssociaDon 57Trading 69Other 239Total 1,910

SizeofOrganisa5on NumberFewerthan100 478100to500 260500to1,000 1711,000to2,000 1162,000to5,000 208Morethan5,000 677Total 1910

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Multi-Factor Financial Centres InstrumentalFactors R-Sq

IF01OfficeOccupancyCosts 0.5034BE16OECDCountryRiskClassificaDon 0.4966RF11PriceLevels 0.4934RF14InnovaDonCiDesGlobalIndex 0.4010RF12GlobalCiDesIndex 0.4008RF01WorldCompeDDvenessScoreboard 0.3971BE18FinancialSecrecyIndex 0.3795IF17LogisDcsPerformanceIndex 0.3766RF02GlobalCompeDDvenessIndex 0.3520RF22IESEciDesinmoDonindex 0.3289HC17CostofLivingCityRankings 0.3230BE01BusinessEnvironmentRankings 0.3180IF02OfficeSpaceAroundtheWorld 0.3111RF17GlobalEnablingTradeReport 0.3085BE14BankingIndustryCountryRiskAssessments 0.3005RF21CityIniDaDvesforTechnology,InnovaDonandEntrepreneurship 0.2877HC08TopTourismDesDnaDons 0.2524BE20CityGDPFigures 0.2459IF08QualityofRoads 0.2447RF05FDIConfidenceIndex 0.2402IF13MetroNetworkLength 0.2383RF13NumberofinternaDonalassociaDonmeeDngs 0.2343HC11GlobalTalentIndex 0.2317

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The GFCI Process

GFCI 19 uses 25,495 assessments from 2,520 respondents

GFCI 19 uses 105 Instrumental

Factors

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Headline findings (1)

City GFCI19Rank GFCI19Ra5ng GFCI18Rank GFCI18Ra5ng ChangeinRank ChangeinRa5ng

London 1 800 1 796 - ▲4NewYork 2 792 2 788 - ▲4Singapore 3 755 4 750 ▲1 ▲5HongKong 4 753 3 755 ▼1 ▼2Tokyo 5 728 5 725 - ▲3Zurich 6 714 7 715 ▲1 ▼1WashingtonDC 7 712 10 711 ▲3 ▲1SanFrancisco 8 711 9 712 ▲1 ▼1Boston 9 709 12 709 ▲3 -Toronto 10 707 8 714 ▼2 ▼7Chicago 11 706 11 710 - ▼4Seoul 12 705 6 724 ▼6 ▼19Dubai 13 699 16 704 ▲3 ▼5Luxembourg 14 698 19 700 ▲5 ▼2Geneva 15 694 13 707 ▼2 ▼13Shanghai 16 693 21 698 ▲5 ▼5Sydney 17 692 15 705 ▼2 ▼13Frankfurt 18 689 14 706 ▼4 ▼17Shenzhen 19 688 23 694 ▲4 ▼6Osaka 20 687 20 699 - ▼12

SaoPaulo 43 639 31 672 ▼12 ▼33RiodeJaneiro 44 637 35 666 ▼9 ▼29

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Headline Findings (2)

The mean of the top five centres by region. North America and Western Europe are now behind Asia/Pacific.

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GFCI1GFCI2GFCI3GFCI4GFCI5GFCI6GFCI7GFCI8GFCI9 GFCI10

GFCI11

GFCI12

GFCI13

GFCI14

GFCI15

GFCI16

GFCI17

GFCI18

GFCI19Asia/Pacific EasternEuropeandCentralAsia LaDnAmerica&theCaribbean

MiddleEast&Africa NorthAmerica WesternEurope

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GFCI1 GFCI3 GFCI5 GFCI7 GFCI9 GFCI11 GFCI13 GFCI15 GFCI17 GFCI19

London NewYork HongKong Singapore Tokyo

New York, London, Singapore and Hong Kong remain the four leading global financial centres. Tokyo, in fifth place, is 25 points behind Hong Kong.

Headline Findings (3)

New York / London Trend

Hong Kong / Singapore Trend

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Headline Findings (4) Asian seems to have been ‘flat-lining’ for the past three years. Singapore has climbed just ahead of Hong Kong. Seoul has fallen but remains in fourth place in the region.

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HongKong Singapore Tokyo Seoul Shanghai

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Headline Findings (5) Sao Paulo remains the top Latin American centre in GFCI 19. Where should Santiago be?

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SaoPaulo BuenosAires MexicoCity RiodeJaneiro

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Factors of Competitiveness

Z/Yen Taxonomy

Areas of Particular Concern in 2015/16

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What’s on People’s Minds

AreaofCompe55veness NumberofMen5ons MainIssues

BusinessEnvironment 936RegulaDonismoreimportantthaneverandneedstobeclearandfair

CorrupDonisevenmorehighprofilethanbefore

HumanCapital 831CentresbecomingmorecompeDDveinacracDngskilledpeopleDevelopingcentres-moreawarenessofa'braindrain'anddemographics

TaxaDon 796TaxrulesmustbeharmonisedinternaDonallyTaxshouldbetransparentandreasonable-andseentobereasonable

ReputaDon 714Security,safetyandhumanrightsarebecomingevenmoreimportant

Centresneedtomarketthemselves-amorecompeDDvemarketplace

Infrastructure 707Roadtransportisbecominganimportantissueinmanycentres

Lackofdirectflightsintocertaincentresholdsthemback

FinancialSectorDevelopment 609

MorefocusontheimportanceoftheEUclustertoLondonPhysicalproximitysDllveryimportant

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Financial Centre - Generalities

Ø  You can’t be good at everything – specialise?

Ø  You can’t be an international centre without international people

Ø  Successful people want to live in successful cities

Ø  People want to live in cosmopolitan places

Ø  Reputation is vital – and you can lose a good one overnight

Ø  Increase transparency wherever possible

Ø  Continue to demonstrate commitment to meeting international standards

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Discussion and Questions

Participate in the GFCI yourself at: www.financialcentrefutures.net

In the Spirit of Collaboration:

A Chilean who helps England An English Man who helped Chile