India Surpasses China as Asia's Top Market for Company Listings in…

Team S · 2024-12-26T13:09:08.000Z

In a significant shift in Asian finance, India has overtaken China as the leading market for company listings in Asia this year. Propelled by companies like Swiggy and Hyundai Motor, India is set to become the world's second-largest equity fundraising market behind the US for the first time. The National Stock Exchange of India is poised to be the top venue for primary listings by value, surpassing Nasdaq and Hong Kong Stock Exchange. This change comes as China experiences a relative listings drought due to tightening regulations. The value of primary and secondary listings in mainland China fell by about 86% from over $48 billion in 2023 to just $7.5 billion in 2024. Meanwhile, Indian companies have rushed to take advantage of high valuations following a multi-year rally in Indian equities. India's market has been buoyed by strong domestic flows, with households increasingly investing in local equity markets. However, as India's rapid growth slows, with weak corporate earnings and falling GDP growth, foreign portfolio managers have become cautious about its frothy equity market. Despite these concerns, bankers remain optimistic about the continued exuberance in Indian primary and secondary listings into the new year. They expect the first two quarters of 2025 to see similar levels of activity, provided market conditions remain supportive and liquidity is available. Global investment bankers are bullish on India's prospects but warn that its relative growth may be overshadowed by a larger comeback in the US and potentially China in the coming year. As the global IPO market activity is expected to normalize in 2025, with increased volumes in the US, Europe, and possibly China, India is still anticipated to continue its growth trajectory in the listings market.

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India Surpasses China as Asia's Top Market for Company Listings in… | Newnex