Shanghai 'could leapfrog' London in financial league

London could lose its financial position behind New York

London could be pushed into third place as a global financial centre by Shanghai in the next decade, according to a report.

The survey, carried out by law firm Eversheds, suggests business leaders think the West is facing accelerated competition from the East.

More than 90% of bosses in Shanghai are confident in their economic outlook for 2010 compared with only 22% in London.

New York will still be seen as the most significant financial centre.

London and Shanghai will vie for second place, according to the study.

Across the United Arab Emirates, 69% said they were confident of their economic prospects over the coming year.

For Eversheds' Boom or Gloom report, a total of 600 senior executives across London, Mumbai, New York, Shanghai and the UAE were canvassed.

Commenting on the findings, Alan Jenkins, chairman of Eversheds thinks companies across the world are reacting to and recovering from the global financial crisis at varying rates.

"More established economic centres are still digesting the extent of the crisis. Confidence levels in the East are in stark contrast to the traditional economic powerhouses," he said.