New York, London, Paris and Tokyo remain the top 4 on the index.

In the middle of the rankings are Shanghai, at No 18, and Taipei, which was No 40. Shanghai, which improved by three places in 2014, attracted a more diverse and talented group of citizens, giving it a comparative advantage over Taipei and Beijing.

Top 10 happiest cities in China

China's top 10 richest cities

The position of Taipei has dropped slowly from No 34 in 2008 to No 40 in 2014. Human capital and business activity are Taipei's weak spots when compared to its fellow Chinese cities.

Three more Chinese cities were mentioned in the top 84: Guangzhou at No 66, Shenzhen at No73, and Chongqing at No 84.

Guangzhou, capital of South China's Guangdong province, had the highest percentage increase in business activity and human capital across the globe, but also had the most significant decrease in political engagement.

Shenzhen had a much lower score in human capital than its twin city of Guangzhou. Human capital measures the size of a city's foreign born population and international students, as well as the performance of its universities and the education level of citizens.

Southwest China's Chongqing, was among the cities that have slipped the most in rank since 2008.

Over the last six years, Chongqing has experienced both the biggest percentage drop in political engagement as well as the highest percentage increase in business activity.