our respective anniversaries come at a critical juncture for the world economy. The financial crisis has been the worst one in our lifetime. It exposed massive failures in regulation, in supervision, in corporate governance and in risk management. The crisis also resulted in a major loss of confidence by the public in governments, in business and in finance.
The booming IPO market reflects the strong and continuous development of SMEs in China’s private sector in the last three decades. According to the Ministry of Commerce, there are over 10 million registered SMEs, accounting for 99% of all businesses in China. And 99% of the country’s SMEs are private businesses. Furthermore, Chinese SMEs are responsible for 60% of the nation’s GDP, 70% of exports, 80% of urban employment and 70% of patents for technological invention. Undoubtedly, SMEs are cornerstones for the nation’s economic growth and social well-being.
Capital markets facilitate fund raising opportunities for businesses which aspire to invest for sustainable growth in a highly competitive environment. Public offerings play a pivotal role in ensuring that businesses gain international competitive advantage as well as global recognition.
PARIS (Reuters) - The 20-minute "flash crash" will reverberate for quite some time to come. For years, America's stock markets were the envy of the world, the model for modern trading -- fast, stable, efficient and for the most part transparent.
But after the Dow Jones industrial average plunged nearly 700 points on May 6 before sharply rebounding, that perception changed, possibly for good.
For WFE, the year 2010 is a memorable year: it is the 50th anniversary year of the Federation. For Shanghai (SSE) and Shenzhen Stock Exchange (SZSE), two exchanges in China, the year 2010 is also a memorable year. Two months from now, it will be the 20th anniversary of the founding of the Shanghai and Shenzhen Stock Exchanges.
An initial public offering can change a company. Many in the media seemed certain that if we went public, the Google ethos wouldn’t survive. People predicted that we would suddenly be divided into haves and have-nots on the basis of how many shares of Google stock each of us held. The talent would cash out and quit. A new focus on pleasing Wall Street would cause us to lose our prized objectivity and independence.
The wake of corporate failures in the early part of the decade and the subsequent economic crisis, which for many countries and industries is still not something of the past, resulted in a flurry of new laws and rules by legislatures and regulators. The intention of such reforms is clearly to enhance public protection, and ultimately the sustainability of corporations, economies and nations.
An exchange used to be a place – yes, a physical place -- where people would come together to buy or sell, hoping to achieve the best price for themselves. The more the exchange was able to attract all of the buy and sell interests in a product, the more the prices on the exchange would reflect the truestate of supply and demand.
Traditionally exchanges have been monopolies. They were owned by their members, blessed by governments, and acted like utilities. The cost of building a market center, developing a network, and gaining critical mass virtually ensured an exchange’s success. The more liquidity an exchange attracted, the more critical it was to trade there. This created a virtuous cycle where the big got bigger and the small became irrelevant. For decades this allowed larger exchanges to operate virtually unopposed, as they may as well have carved the adage “Where Liquidity Begets Liquidity” on their marble cornerstone.
It is clear that there is increasing appetite for Africa as an investment destination. Both investment flows into the continent’s markets and the number of funds focused on the region are increasing as low yields in developed countries prompt investors to search for high returns in previously unexplored emerging markets. This is good news for the continent.