London stock market in 'doom spiral' as companies flock to New York

Over-regulation and complex listing rules eroding City's appeal

London stock market in 'doom spiral' as companies flock to New York
New York Exchange

If London is not careful, it will continue to fall down the rankings of global financial centres. The London stock market finds itself in a "doom spiral" of decline as more companies opt to move their listings to New York amid over-regulation and complex listing rules that are destroying the City's appeal.

The latest Z/Yen Global Financial Centres Index 35 reaffirms New York's status as the world's leading financial hub for the sixth straight year, cementing its position after overtaking London in 2018 following the Brexit vote. London has maintained its second-place ranking since then, ahead of Singapore in third place.

The continued exodus of UK companies seeking listings in New York underscores the challenges London faces in retaining its global competitiveness post-Brexit. Companies like chip designer Arm, which has already left, as well as travel giant TUI and betting firm Flutter have announced plans to abandon or switch their primary listings away from London. TUI, Europe's biggest travel company, is leaving the London Stock Exchange in favour of listing solely in Germany, while Flutter plans to switch its primary listing from London to New York, with shareholders due to vote on the proposal in May.

While a welter of British financial reforms have been introduced, they have yet to curb the flow of firms abandoning the City for greener pastures across the Atlantic.

Hong Kong remains in fourth place in the rankings, followed closely by San Francisco, which has benefited from its strong role in financing the tech sector.

Since 2015, the Global Financial Centres Index has emerged as the go-to ranking for assessing financial centre competitiveness. Published twice a year by a powerhouse duo - Z/Yen Group in London and the China Development Institute in Shenzhen - the GFCI leverages the insights of over 29,000 finance professionals. This subjective data is combined with over 100 indices from established organisations like the World Bank, creating a unique and powerful ranking tool.

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