However, the published in June by New Financial are for 2019, a year in which the effects of Brexit were not yet felt. The City has since lost its position as Europe's leading equity market to Amsterdam. And the data also predates the covid-19 pandemic. 

In those "old days", the US dominated the global countries ranking and the UK, in second place, was the European leader. China completed the top three, unchanged since the previous study in 2016, while France, Germany and Luxembourg were overtaken by Hong Kong.

Hong Kong has since lost almost all its autonomy from Beijing and its role in international finance is being questioned, a situation currently benefitting Singapore.

Luxembourg penalised by small domestic market

As far as Luxembourg is concerned, its eighth place in the overall ranking is due to its "very small domestic market”, the study states.

Leaving this factor aside, Luxembourg ranks third in the world and second in Europe for its international activity, while ranking fourth in the world for the economic, financial, commercial and regulatory environment in a broad sense.

The index also ranks the grand duchy as the second largest investment fund centre and the third largest exporter of financial services worldwide.

Luxembourg is also the world leader in corporate bond issuance and in the issuance of green, social and sustainable bonds by foreign companies, positions that are not reflected in the overall ranking.