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Asia-Pacific capital markets suffer dent |
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The US financial crisis has served a dampener on Asia-Pacific's, and in particular India's equity capital markets (ECM) growth story. Not only have the prices of stocks crashed to new-lows, the trading volumes have also dipped drastically this year. The worst affected is India, which slipped by a whopping 75% to the 10th most active equity market globally in the third quarter this year, from the sixth position it enjoyed in the year ago period.
Asia-Pacific equity capital markets registered the lowest number of deals in 10 years, while their volumes plummeted to the lowest third-quarter level since 2001. Q3 volumes stood at $15.6 billion in proceeds from 178 issues, according to data by Thomson Reuters.
China with an over 45% dip in deals captured a 19% market share, and was ranked the second largest IPO market globally. Global equity market deals dipped by over 35% to $392 billion from 1,696 issues in the third quarter this year. Asian markets closed in the red last Friday, with Nikkei down 0.94 per cent and the Hang Seng down 1.33 per cent.
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