Asia to dominate global stock markets, IPO over the next 10 years

Asian markets are set to dominate the global capital markets over the next 10 years.


The combined value of the global stock markets would increase by 38 per cent from $84 trillion at the end of 2017, according to The New Financial Global Capital Markets Growth Index, commissioned by the Global Financial Markets Association (GFMA).


The majority of this growth (55 per cent) would come from the stock markets in emerging economies. The stock markets of emerging economies in the Asia Pacific region would double in value, whereas the markets in Europe would increase by less than one-fifths, the report says. 


In terms of dollar value, emerging markets would add more than $17 trillion in growth, compared with $14 trillion in developed markets. Asian markets would account for nearly two-thirds of this global growth, and their combined growth of over $20 trillion would be nearly three times the increase in the Americas and five times the potential growth in Europe, Middle East and Africa (EMEA).

Asian markets will also dominate the potential growth in IPO activities over the next 10 years. The global IPO issuance is expected to increase in real terms by around 40 per cent a year, with an additional $79 billion of deals. Nearly 70 per cent of this growth would be in Asia, adding up to $54 billion in additional activity. This is four times larger than the potential growth in the Americas and five times larger than EMEA.

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