As Asian financial centres are among the most competitive internationally to outpace their global counterparts, Shanghai is further cementing its position as China's financial hub.

In the latest Xinhua-Dow Jones International Financial Centers Development Index, it ranked as the sixth most competitive financial centre worldwide, up two spots from a year ago.

But in the sub-category of growth and potential development, Shanghai topped the list.

Jiao Ran, director of Economic Information Editorial Department of Xinhua News Agency, said: "Its vibrant financial market and continually improving service standards are attracting more and more investors and talent, gathering greater strength for development.

"This is also the reason why Shanghai could overtake France and Frankfurt, two cities with long histories in the latest financial crisis."

The index evaluates 45 cities worldwide, based on indicators such as the financial market, industrial support, service, general environment, plus an emphasis on growth and development.

Meanwhile, Singapore also moved ahead by one place - to fifth - thanks to strength in its industrial support and balanced development in all aspects.

Over the past year, cities in the Asia Pacific region appear to have developed an edge in terms of development, over American and European cities. Apart from those in the top 10, others such as Beijing, Mumbai, Seoul, Osaka and Taipei have also risen in ranking.

But observers said there is still a lot of room for improvement.

They note that the financial centres in emerging economies generally scored low in service levels.

Michael Petronella, president of CME Group Index Services, said: "As confidence goes way up, service will follow. And to be very blunt, the Asian culture is not on service. I see that improving. The regulatory environment will improve. "

Overall, New York and London were the two most competitive financial centres, but Washington was squeezed out of the top ten by Amsterdam.

channelnewsasia.com