AsianFin -- Shanghai has broken into the world’s top five asset management centers for the first time, underscoring China’s push to build a global financial hub even as traditional rivals in Europe face mounting challenges.

At the “2025 Global Asset Management Center Evaluation Index Release and CLF50 Autumn Conference” held in Shanghai on Sept. 23, the China Europe International Business School (CEIBS) unveiled its annual ranking of global asset management centers.

The report, produced with partners including the CEIBS Lujiazui Institute of International Finance and the Shanghai Financial Industry Association, showed New York retaining the No. 1 spot. Paris rose to second place, while London slipped to third. Shanghai advanced from seventh to fifth, its best performance to date.

The study pointed to Shanghai’s strength in three key areas: underlying asset supply, growth momentum, and technology. The city ranked third globally in underlying assets and growth, and sixth in both capital sources and asset management technology.

“Technology has become a key driving force for global financial centers,” said Zhao Xinge, executive vice dean of the CEIBS Lujiazui Institute of International Finance. “That’s why we introduced a new technology indicator this year, covering infrastructure, market activity, innovation, and applications. It allows us to reflect more accurately how cities are adapting to the digital era of asset management.”

The 2025 index highlights what researchers call a “one superpower, many strong players” model. New York continues to dominate with its unmatched capital base, deep asset pools, and leadership in technology. The U.S. hub has surged ahead in areas like intelligent investment research and high-frequency trading, further entrenching its lead.

Paris, buoyed by its strength in ESG and alternative assets, climbed to second place and is now dubbed the “Global ESG Capital.” Europe still accounts for about 85% of global ESG assets, underscoring its edge in sustainable finance.

London, by contrast, slipped to third as post-Brexit challenges weigh on talent attraction and tax competitiveness. Boston and Toronto, meanwhile, are rising quickly, leveraging long-term capital, active management, and technology to carve out new niches.

For Asia, Shanghai’s debut in the top five marks a turning point. The city is now the fourth-ranked hub globally for digital infrastructure, and it ranks among the top two worldwide in AI-related venture capital, patent output, and the number of large language models. On average assets managed per robo-advisory account, Shanghai stands at No. 5.

“Shanghai is moving from quantity to quality in asset management technology,” the report said. “It is emerging as a hub where digital infrastructure and applied AI intersect with global finance.”

Not all Asian centers are faring as well. Hong Kong dropped to 10th from 9th, and Singapore fell sharply to 13th from 6th, reflecting what the report described as overreliance on institutional advantages rather than technology-driven growth. By contrast, Mumbai emerged as the biggest “dark horse.” With IPO volume and trading activity expected to lead globally in 2025, India’s financial capital is leveraging high savings rates, capital market liberalization, and digital finance adoption to climb rapidly.

For the first time, the CEIBS index introduced asset management technology as a formal ranking category. The framework covers four layers: foundational (such as data centers and infrastructure), market (AI investment flows), innovation (patents and AI models), and application (including robo-advisory adoption).

At the innovation layer, Shanghai ranked No. 1 worldwide in patent quality, with its gap to New York narrowing in AI model development. New York and Boston still lead in robo-advisory penetration, but Shanghai is catching up.

Different hubs are carving distinct paths. New York leans on its capital scale and technical edge in trading and research; London emphasizes regulatory technology and compliance; Luxembourg is advancing digital securities via blockchain legislation; Hong Kong is pushing frameworks for virtual assets and stablecoins. Shanghai is betting heavily on AI investment, patents, and applied digital tools in advisory services.

The report also found that the supply of underlying assets is increasingly driven by emerging markets. Mumbai’s rise is linked to IPOs and trading, while China is supplying green finance, advanced manufacturing, and infrastructure-related assets.

In product terms, U.S. hubs dominate open-ended funds and ETFs, Europe maintains leadership in ESG, and Asia is becoming more competitive in alternative and technology-linked assets.

Growth momentum is also shifting. Mumbai and Toronto posted standout growth rates, while London, Zurich, and Chicago lagged. “Financial growth opportunities are moving decisively toward emerging markets that combine institutional innovation with rapid technological adoption,” the report concluded.

CEIBS’ Zhao said digital assets are at the heart of this transformation. Product design is moving from traditional stock-and-bond structures to programmable, blockchain-based assets. Client profiling is shifting from static risk assessments to real-time, on-chain analytics. And compliance systems are moving toward “code-as-compliance,” embedding rules directly into transactions.

“Digital assets are not just an add-on,” Zhao said. “They are reshaping how portfolios are constructed, how clients are served, and how compliance is managed.”

Looking ahead, the report said China has a unique chance to shape the next phase of global asset management. With 300 trillion yuan in investable assets and household savings moving from deposits and real estate into financial markets, China could translate domestic demand into global influence. The country’s dominant position in clean energy supply chains also gives it leverage in green asset management.

By building on strengths in digital infrastructure, artificial intelligence, and industrial policy, Shanghai could establish itself as Asia’s core hub for asset management technology—and one of the world’s leading centers overall.