Shanghai has attracted the largest volumes of foreign direct investment (FDI) into its financial services sector in the 12 months to the end of January 2015, according to estimates from database fDi Markets. A total of $1.55bn reached the Chinese city.
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A close second, Singapore attracted $1.33bn, invested across 35 projects – significantly higher than Shanghai’s 21. The largest single investment was also recorded in Singapore: Mizuho Bank’s expansion of its regional hub to serve south-east Asia, India and Australia. The project is estimated to be worth $145m and will create 300 jobs.
Shanghai slips down
Hong Kong sits in third position, with $954m and 26 projects. The rankings’ first three places remain unchanged from a year earlier, but while Singapore and Hong Kong were able to capture larger investment flows, Shanghai suffered a decrease in FDI reaching its financial hub: about $170m lower than the $1.72bn it attracted during the 12 months to the end of January 2014.
Despite attracting larger foreign investments, China’s other financial centre, Beijing, slipped in the ranking to seventh position from fourth it previously held. Bangalore, Mumbai and Sydney all performed better and climbed to fourth, fifth and sixth place, respectively.
Obvious by its absence from the most recent table is Tokyo. The Japanese capital, however, leads the ranking by outward FDI, having invested a total $1.72bn abroad. It is followed by Seoul’s $1.23bn and Taipei’s $983m. Singapore, the previous largest outward investor, slipped to sixth place and saw its capital expenditure into other financial centres cut to $489m from $1.45bn a year earlier. Mizuho Bank’s project in Singapore – the city-state’s largest inward investment – was also Tokyo’s biggest outward FDI.
