The state of capital markets in the UK is risky. The public subscription activity decreased to its lowest level in 30 years.
In the first half of this year, five lists were said to have raised 160 million pounds (about 215 million dollars) less than the amounts dating back to 1995, according to the Dealogic data provider.
The London Stock Exchange underwent several years of decline after reaching the peak of the postpartum in 2021, when she raised 142 deals a total of $ 26 billion. In contrast to last year, 16 deals that raised $ 3.5 billion through the offer of Ion analyzes, a 87 % decrease from 2021. Analysts say that late capital markets in London focus on intense competition between leading financial centers.
The Dat Ngo, the CPA and professional in personal financing in the London -backed PROP companies, says the UK stocks are trading with a discount of approximately 50 % on similar American stocks, and deep local complexes of London -supporting money. “This gap says liquidity is thin and domestic demand is weak – a rotation is fed the opponent.”
Among the wise New York subscription banks, while the cobalt unit in Glencre pulled its planned list. However, despite concerns about the UK’s global status, reforms such as updated and simplified procedures are gaining strength to make their indexes more attractive.
Nick Colbridge, a partner at the Dentons Law Office, said that simplifying procedures itself provides only a long -term limited solution. “For most exporters, the comparison between places will be based on expected commercial complications, instead of the hoops that must jump until they float.”
For London, the challenge encourages more active participation in the markets in markets that are still dominated by negative pension funds, says Colbridge. Old taxes-such as sting fees by 0.5 % on each alive purchase-is to thwart investors.
The UK’s decision for 2016 to leave the European Union erodes London’s reputation as a prominent investment destination, which has converted interest to other European stock exchanges. However, in 2024, London regained its position as the largest stock market in Europe, exceeding the Euronext Paris
Although there is calm optimism among investors that the UK is on its way to reforming capital markets, there is still a way to go.
