Hong Kong is the most costly city in the world for expats and Beijing, overtaking London, ranks 10th in the latest Cost of Living report.

The report, issued on Wednesday by Mercer consulting group, said Hong Kong overtook the former costly champion Angola’s capital Luanda, which now ranks 2nd. The two are followed by Zurich, Singapore and Tokyo.

Major Chinese cities such as Shanghai and Beijing rank 7th and 10th respectively, outstripping London, which now sits at 17th moving back from last year’s 12th.

Meanwhile, the world’s cheapest cities for expats are Windhoek, Namibia, Cape Town and Bishkek in Kyrgyzstan, which are listed as the cheapest three on the report.

The report compares the cost of more than 200 items in over 200 cities across the world, covering food, transportation, accommodation and entertainment, AFP reported.

“Generally speaking, prices remained stable across the world,” Bruno Rocquemont of Mercer France told AFP, adding that steep rises or falls in cities’ rankings are attributed chiefly to exchange rate fluctuations.

According to The Guardian, house rents are presented as one of the largest costs for expats.

While many Asian cities remain the world’s most costly cities for expats, Mario Ferraro of Mercer said it has not stopped companies from dispatching talents to those cities, “as the region continues to offer growth potential and the demand for top talent remains high,” The Financial Times reported.