Hong Kong’s corporate governance ranking in Asia tumbled to the lowest level in decades, falling behind those of Japan and Singapore, amid concerns about the deterioration of minority shareholder rights and the independence of the judiciary in the city, according to a research report.

The financial hub dropped to sixth place this year from second, according to the Asian Corporate Governance Association’s CG Watch rankings. It’s the first time Hong Kong dropped out of the top three spots in the rankings since they began in 2003, according to the report, which was released with CLSA Wednesday.

The report marks the latest setback to Hong Kong’s efforts to revive its image as the region’s premier international finance centre. Banks have been eliminating jobs in the city amid a slump in deals, while the city’s benchmark Hang Seng Index is one of the worst performers among major bourses this year.

Hong Kong’s introduction of a Beijing-led national security law and its crackdown on political activists has also eroded perceptions about the strength of its institutions and the free flow of information in the city, according to the report.

“The independence of the judiciary and a stifling of the press and academia has also contributed to its current ranking,” the report said.

Hong Kong Chief Executive John Lee has repeatedly defended the merits of the security law and government officials have balked at the idea that Hong Kong is losing its stature as an international hub.

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Meanwhile, Australia, which has ranked No 1 since 2016, kept its top spot. Japan jumped to No 2 for the first time since the study began thanks to its “strong” government reforms and efforts by the local stock exchange to improve governance, according to the report.

Singapore came third, tied with Taiwan, followed by Malaysia. BLOOMBERG