Hong Kong has regained its position as one of the world's top three financial centers, defying naysayers claiming "Hong Kong is over" and underscoring its great resilience and potential backed by the Chinese mainland.

The city moved up one place to rank third globally and first in the Asia-Pacific region, a glory lost over the past two years, according to the Global Financial Centers Index (GFCI) report published Tuesday by British think tank Z/Yen Group and the China Development Institute in Shenzhen.

The report, released twice every year since 2007, showed Hong Kong's ranking, among 121 financial centers assessed, advanced to first in investment management and rose five places to ninth in fintech offerings. Its scores were also rated among the top in multiple areas from business environment to human capital and infrastructure.

"This year's results reflect renewed confidence in Hong Kong's financial sector, highlighting its resilience and adaptability in a rapidly changing global landscape," Hong Kong's Financial Services Development Council said in a statement.

Hong Kong's return to the top three is "not surprising," said Shang Hailong, a member of the Legislative Council of the Hong Kong Special Administrative Region (HKSAR), noting that the city has maintained its major competitive edge in financial services and corporate financing, driven by the unique advantages of the "one country, two systems."

Liang Haiming, president of China Silk Road iValley Research Institute, said Hong Kong had gained greater significance in the international financial landscape, particularly within the Asia-Pacific region.

Over the past decades, Hong Kong has developed itself into a leading global financial center with highly professional services in a wide range of areas from the banking sector to the stock and bond markets, thanks to the strong support of the Chinese mainland and the close connection to the international markets.

As the "super connector," Hong Kong has embraced even more opportunities and achieved greater development since its return to the motherland in 1997.

Weighed down by social unrest in 2019, the COVID-19 pandemic and tightening geopolitical conditions, Hong Kong -- like many other open economies -- faced significant challenges over the past years. Some pessimists even portrayed a grim picture of capital flight and claimed that "Hong Kong is over" or it has descended to a "ruin of an international financial center."

However, the latest GFCI report added to evidence that Hong Kong has bounced back with enduring appeal for global investors and businesses.

"We don't see big banks are leaving Hong Kong. In fact, we do see many financial services industry professionals are returning to Hong Kong from Singapore, Dubai and other places where they stayed for some time during the COVID-19 pandemic," said George Chen, managing director and head of Hong Kong Office of The Asia Group.

"Hong Kong remains competitive in many aspects when it comes to the very tough competition for global financial center status," Chen said.

"While some news reports gave the impression that Hong Kong is becoming less attractive...the city is actually still an attractive place for foreign investment," said Xiao Geng, chairman of Hong Kong Institution for International Finance.

At the end of 2023, assets under management in Hong Kong grew about 2 percent from the previous year to more than 31 trillion Hong Kong dollars (about 4 trillion U.S. dollars). Net fund inflows reached 390 billion Hong Kong dollars, representing a year-on-year increase of over 3.4 times.

The IPO market is also picking up pace. Home appliance giant Midea Group went public on the Hong Kong stock market last week, raising some 4 billion U.S. dollars. Midea's IPO was the largest in Hong Kong since 2021 and the second largest in the world this year.

A Deloitte report estimated that 45 companies will raise a total of 50.9 billion Hong Kong dollars in the first three quarters this year, with the volume more than doubled than a year ago. For the entire 2024, the IPO volume could reach 60 to 80 billion Hong Kong dollars, the consultancy said.

Observers attributed Hong Kong's retained financial strength and rapid recovery to the vast opportunities presented by the Chinese mainland market and stronger supportive policies from the central government, as well as the city's own efforts to promote innovation.

The People's Bank of China and the Hong Kong Monetary Authority jointly rolled out an array of new measures in January to strengthen financial cooperation, including improvements to the Bond Connect program and the Cross-boundary Wealth Management Connect Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area, as well as a deepened digital RMB pilot.

In April, the China Securities Regulatory Commission unveiled policies to boost cooperation between the capital markets of the Chinese mainland and Hong Kong, with an expanded scope of ETFs and the inclusion of REITs under stock connect schemes, the enhanced mutual recognition of funds, and support for the leading Chinese mainland companies to go public in Hong Kong.

The resolution adopted at the third plenary session of the 20th Central Committee of the Communist Party of China in July pledged to consolidate and enhance Hong Kong's status as an international financial, shipping and trade center.

Moreover, Hong Kong itself has also pushed for reform and innovation to sharpen the financial competitiveness.

Hong Kong is cultivating new edges in "new finance," including green finance and fintech, with efforts to improve the regulatory framework, enhance financial infrastructure, and nurture talent, according to Christopher Hui, secretary for financial services and the treasury of the HKSAR government.

Julien Martin, who runs a financial service firm engaged in green finance in Hong Kong, is certain that the city is the right place. "I need technology, green finance and a strong regulatory regime. These are all Hong Kong's strengths," the financial veteran from France said.

With the support of Cyberport, an incubator in Hong Kong with the largest local fintech start-up community, Martin's company was able to access the latest technology and better connect with potential clients in ASEAN and the Middle East.

Analysts are confident that Hong Kong could play a bigger role in the Chinese mainland's wider opening up and quickened economic transformation.

With favorable conditions in systems, laws and talents, Hong Kong can give full play to its unique ability in bridging the Chinese mainland and the world and make greater progress in promoting global trade and international finance, said David Liao, co-chief executive of Asia-Pacific, HSBC.

"The more we integrate with the mainland, the greater our attractiveness and contribution to the world," Hui said.