Hong Kong set to overtake London with its increasing number of finance workers

Finance workers in Hong Kong will soon surpass the number that are working in London. The former colony has been rapidly developing through the past several years and now it is about to exclude London from the top three financial centres in the world.

CEBR stated that the main reasons for London’s fall are the “penal taxation, banker bashing and short-sighted over-regulation”. Hong Kong, a former British colony, will have over 248,000 financial workers by the end of 2015.

In the meantime, London will have just 237,000. The difference may seem small, but just five years ago London had twice more financial services workers than Hong Kong. CEBR noted that the unstable economical climate in Europe also played a role in this change.

London was considered the main financial centre for several years, but it lost its place to New York after this year’s statistics were released. However, the statistics also show that New York will most likely lose its crown to Hong Kong by 2016.

The recent decline of City will have a huge influence on London’s financial climate. It is expected that the money taxman takes from the Square Mile will be £30bn less than in the period before the financial crisis.

The CEBR statistics follow a recent research conducted by Markit. The company’s research involves over 11,000 companies and the results were quite concerning. Business confidence is at its lowest for the past decade and a major part of companies state that they don’t expect the world economy to recover soon.

The bonuses offered by City will also collapse, falling down to £6,400, marking a £27,600 decrease when compared to their peak of £33,000. Meanwhile, other companies are following City’s example and reducing payouts and replacing them with bonuses, following the public’s reaction to high payouts.