LONDON: Global market research company Euromonitor International launched an IPO Market Resilience Index identifying the most resilient IPO markets and how the Covid-19 outbreak will impact them.
From the end of 2020, the top five most resilient stock markets in the world are forecast to be China, the United States, 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 the 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,” comments Joao Luiz Paschoal, consulting practice manager for investor services at Euromonitor International.
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. — April 23, 2020, Bernama
