Friday 24 April 2020

China to overtake US as most resilient IPO market in 2020

KUALA LUMPUR, April 23 — Euromonitor International has launched an IPO Market Resilience Index, identifying the most resilient IPO markets and how the recent COVID-19 outbreak will impact them.

From the 2020-end, the top five world’s most resilient stock markets are forecasted to be China, the United States (US), Hong Kong, Saudi Arabia and India. For the first time in 20 years, China will take over the number one spot from the US.

With three out of five IPO markets located in Asia Pacific (APAC), the region’s strong growth is driven by the expansion of local players and investor-friendly policies.

​“Being the first region impacted by COVID-19 also gives an advantage to APAC economies, as countries in the west are currently relying on imported goods from China, Malaysia and India, amid disruption to their own supply chains,” said Euromonitor International consulting practice manager for investor services, Joao Luiz Paschoal in a statement.

According to Euromonitor’s IPO framework index, APAC economies have an average score multiplier of 3.7, more than double the score for western economies, translating to a more attractive environment for IPO markets.

“Interestingly, Saudi Arabia is the only other country alongside China set to improve its resilience by opening the economy to external capital and the aftermath of oil shocks with Russia,” concludes Paschoal.

— BERNAMA

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