China drops to 5th place in global financial competitiveness ranking
What's the story
In a surprising move, China's financial competitiveness ranking has dropped by one place on the global stage. The change was highlighted in a recent report by the Chinese Academy of Social Sciences (CASS), which places China fifth in 2026. The US, Japan, the UK and Germany occupy the top four spots respectively. Liu Dongmin from CASS's Institute of World Economics and Politics said China's lower ranking is mainly due to stock market volatility in 2024 and 2025.
Method
CASS's definition of global financial competitiveness
CASS defines global financial competitiveness as an economy's capability to allocate financial resources and manage risks more effectively than others. This is seen as a key driver of economic and social development. The report was released at the Global Digital Economy Conference 2026 in Beijing, further highlighting China's commitment to becoming a global financial superpower despite its recent ranking drop.
Evaluation parameters
Ranking system and methodology
The global financial competitiveness ranking system, launched in 2021, assesses economies based on five key factors. These include the competitiveness of the financial industry, currency, financial infrastructure, fintech and international financial governance. The recent report analyzed a total of 31 countries around the world.