London slipped from fourth place to tenth in the Schroders Global Cities 30 index, as a result of the U.K.'s vote to leave the European Union.
The index, compiled by Schroders for the first time and released Tuesday, looks at a range of factors, including the projected growth of the economy, disposable incomes over the next decade and the size of the working population. London had been initially ranked in fourth place but the Brexit vote led to a reassessment by the British asset management firm.
The index assesses and ranks the growth and future prospects of 161 global cities and has seen China's mega-cities take three of the top five places. Shanghai topped the index followed by New York in second place, Tianjin (also in China) in third and Beijing in fourth place.
"It should be no surprise China's cities rank so highly given it has strong factors such as gross domestic product (GDP), working population and retail sales," Hugo Machin, co-head of Global Real Estate Securities at Schroders, said in an official statement.
"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."