In a significant shift within Asian financial markets, India has emerged as the continent’s leading destination for company listings in 2024, overtaking China’s long-held position. The milestone places India as the world’s second-largest equity fundraising market, trailing only behind the United States.
The National Stock Exchange of India is poised to claim the top spot for primary listings by value, surpassing both Nasdaq and the Hong Kong Stock Exchange, according to KPMG data. This remarkable achievement comes as Chinese markets face regulatory tightening, resulting in a notable decline in listings activity.
The value of primary and secondary listings in mainland China witnessed a dramatic 86 per cent decrease, plummeting from $48 billion to merely $7.5 billion in 2024. This downturn reflects Beijing’s deliberate policy aims to balance primary and secondary market activities, as explained by Scarlett Liu, APAC equity and derivative strategist at BNP Paribas.
India’s success has been driven by a surge in smaller yet numerous deals, with companies rushing to capitalise on elevated market valuations. Notable listings include food delivery giant Swiggy and the Indian unit of Hyundai Motor. The market has particularly benefited from robust domestic investment flows, as Indian households increasingly participate in local equity markets.
Despite concerns over India’s slowing economic growth and foreign portfolio managers withdrawing more than $11 billion in October alone, banking experts remain optimistic about the market’s momentum continuing into 2025. Gareth McCartney, global co-head of equity capital markets at UBS, suggests that while global IPO activity may normalise with increased volumes in the US and Europe, India’s growth trajectory is likely to persist.
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