The expansion of global capital markets reached a new high after the financial crisis in 2018 triggered in large part by the United States (US) economy. Companies must now consider a series of developing problems that can affect the shape of capital market activities in the future, said Price WaterhouseCoopers’s (PwC) in its latest survey.
PwC viewed, in the future the public market will still play a vital role in the health of the economy, both in the world of developed and emerging market.
However, in addition to the natural evolution of the domestic capital market, better infrastructure and underlying trends in GDP, the future growth of the public equity market will still be influenced by various other factors, including private equity, technology, privatization, and agreements.
In 2018, PwC conducted a follow-up survey in 2011, reflecting the level of optimism after the financial crisis, especially for emerging market. Given the dynamics of growth at that time, emerging market hopes were – especially China and India – to dominate the global equity market in terms of issuance, sources of capital and the influence of their stock markets.
This latest survey shows ongoing recognition of the growing role of the emerging market, but also reflects radical modifications from the perspective of business leaders. Even though domestic market continued to be favored for listings, their superiority over emerging market has narrowed significantly since 2011.
