Singapore and Hong Kong continue to attract the highest levels of foreign direct investment among Asian international finance centres. But there is change afoot elsewhere, with increasing levels of investment in Beijing causing it to replace Shanghai as the third most attractive Asian IFC for FDI.

As Asia's population grows richer, the continent's wealth management industry is struggling to keep pace and meet the needs of the ever-expanding number of high-net-worth individuals. Gone are the days of simply poaching such staff, and many banks are now focusing on producing home-grown talent.

The Asian city state of Singapore attracted more foreign investment in its financial sector than any other IFC in the world over the past year. Geneva, Edinburgh and Glasgow were notable risers in the ranking, while troubled Madrid lost significant ground.

Singapore’s strategic location in Asia is proving a boon to the city state’s transaction bankers, particularly as they seek to capture banking business from the world’s changing trade flows.

The fight for market share in the Asian High Net Worth Individual (HNWI) segment is fierce, as private banks and wealth management arms of major banks from Europe and the US position themselves for future growth.

Magnus Bocker, CEO of the Singapore Exchange, looks at why the Asian market is so vibrant right now.

Singapore's banks have reported stable but modest profits in recent years, but this is coming under threat from low interest rates and a lack of opportunity in an overcrowded market, leading many to consider international expansion. Writer Michelle Price