What UK Can Learn from East Asia’s Stock Market Boom

Stock markets in Japan, South Korea, and Singapore have surged in recent years, contrasting sharply with the sluggish performance often cited in the UK. This dynamic shift prompts a closer examination of the strategies employed by these East Asian countries, which have revitalised their equity markets while the UK continues to grapple with a lack of investor enthusiasm.

AstraZeneca recently made headlines by beginning to trade its shares in America while maintaining its London listing. This move reflects the growing trend of UK companies seeking more favourable valuations across the Atlantic. The disparity in market performance raises questions about the UK’s investment climate and its ability to compete in the global arena.

In recent years, the UK stock prices have enjoyed a modest recovery, leading some to label it a temporary rally, devoid of deeper investor engagement. By contrast, East Asian countries have demonstrated an increased appetite for domestic equities, driven by government initiatives and regulatory reforms that have nurtured investor confidence.

For instance, the Singaporean government launched the S$5 billion Equity Market Development Programme in February 2025, designed to bolster the country’s mid-cap stocks. Tax incentives for funds investing significantly in local equities have further enhanced this initiative. It demonstrates a proactive approach, with government intervention leading to a vibrant trading environment.

Japan’s efforts have been equally noteworthy, with the Tokyo Stock Exchange implementing measures aimed at improving corporate governance and enhancing shareholder returns. A campaign to name and shame companies with low price-to-book ratios compelled boards to engage more directly with investors, thus attracting increased international interest.

South Korea’s “Value Up” initiative, introduced in 2024, aimed to close the valuation gap between domestic and international stocks. Recent amendments to corporate governance regulations emphasized the necessity for directors to consider the best interests of minority shareholders, a move that has fruitfully increased investor trust.

The UK could potentially benefit from adopting some of these successful strategies. Implementing tax incentives for equity investments, addressing stamp duty on shares, and promoting retail engagement in initial public offerings could significantly elevate domestic market participation. Additionally, enhancing corporate accountability through transparent reporting practices might stimulate an uptick in investor confidence.

A comprehensive review of regulatory practices in these East Asian markets reveals a clear path for the UK to re-establish vital connections between businesses and their investors. To stop organisations like AstraZeneca from seeking greener pastures abroad, a renewed focus on fostering local equity markets is essential.