Three of the top five cities in the world are in China, with Shanghai taking the top spot in Schroders’ inaugural Global Cities 30 Index.
According to the firm, the rankings underline how mass migration from the countryside to urban areas over several decades has created vibrant economic powerhouses in a country with a population of 1.35 billion.
New York came in second while London, which had been ranked fourth in the index, fell to tenth after the UK decided to leave the EU in the June referendum.
The index is compiled using factors including the projected growth of the economy and disposable incomes over the next decade and the size of the working population.
The Chinese cities in the top five also include the north eastern city of Tianjin in third and capital Beijing in fourth spot.
According to Hugo Manchin, co-head of global real estate securities, the top global cities will be the drivers of economic growth in their respective countries in the coming decades.
“Although it has slowed recently China is still growing more strongly than the rest of the world and we believe it will become a much bigger part of our forecast over time,” he added.
While London has slipped down the rankings, Manchin maintains it is one of the firm’s favourite cities as it has more high-skilled workers than New York.
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