New York has extended its lead over London as the world’s top financial center, according to global professional services firm Kinetic Partners.

New York has extended its lead over London as the world’s top financial center, according to a new survey by the global professional services firm Kinetic Partners.

The survey, which interviewed 300 financial services professionals, revealed that 59 per cent of those polled saw New York as the leading financial center, up from 49 per cent last year.

Meanwhile, 38 per cent of those questioned believed it to be London, down from 44 per cent last year.

“This shift from just two years ago is a testament to the resilience of the New York market. Despite uncertainty following the 2008 crisis, New York has proven that it can draw and maintain institutions that believe it is the best place to grow their businesses,” said Julian Korek, CEO and founding Partner of Kinetic Partners.

London’s reputation as a global financial center has been tarnished in recent years after being rocked by a number of banking scandals such as the manipulation of LIBOR and the mis-selling of payment protection insurance. Since the financial crisis in 2008, the financial sector has also come in for heavy criticism for pursuing short-term gains over long-term stability, while increased regulation has also added to costs and curtailed activity.

Looking ahead, when asked to name the leading emerging financial center in 2019, 53 per cent of those questioned cited Shanghai, up from 48 per cent last year, while just 9 per cent said Dubai - the second most popular choice.

“Given the rise of Hong Kong in the industry, as well as a fast growing, but lesser known, financial services center in Shenzhen, China’s model for developing hotbeds for financial expertise may be copied in similar countries if it proves successful. However, firms should assess any investment against their global business plans and compliance infrastructures,” said Korek.

"They must ask themselves: what are the realistic returns for the Chinese opportunity? And how might the slowly emerging clarity about the investment and regulatory regime impact the outlook for its future as a leading financial center?” he added.