A Paradigm Shift Towards a Green and Sustainable Finance Center

Hong Kong in Transition: A Paradigm Shift Towards a Green and Sustainable Finance Center 25 3.3 Competition Between Regional Financial Centers The structural changes in Hong Kong’s financial market are risk signals which make the international investors more cautious toward investing in Hong Kong. This certainly gives rise to competent players in the region. Similar to Hong Kong, Singapore has a transparent and efficient legal system, a large pool of well-educated professionals, a world-class airport and other good infrastructure that are essential for an IFC. The two cities are in competition all the time. It is clear that Hong Kong’s competitiveness in all five measured dimensions as a global financial center is weakening; in contrast, Singapore is getting stronger (Figure 17 and Figure 18). Figure 17: Hong Kong’s Ranking in the GFCI with Dimensions’ Breakdown in March 2018 and 2024 (Source: Based on data from the GFCI) Figure 18: Singapore’s Ranking in the GFCI with Dimensions’ Breakdown in March 2018 and 2024 (Source: Based on data from the GFCI) Reputation Human Capital Financial Sector Development 8 6 4 2 0 Hong Kong Business Environment Mar 2024 Mar 2018 Mar 2024 Mar 2018 Reputation Human Capital Infrastructure Financial Sector Development Singapore Business Environment 8 6 4 2 0 Infrastructure