London Stock Exchange in Need of Boost from Treasury
The London Stock Exchange is facing challenges with companies exiting to private equity takeovers and a lack of new listings. A new narrative and marketing campaign are needed to prevent further decline. The Treasury's involvement is crucial to encourage investment in UK equities and address issues like capital flight and declining market share.
A marketing campaign to promote the joys of investing in the London stock market is being suggested to prevent the London Stock Exchange from becoming irrelevant. Since 2016, 143 UK-listed companies have been taken over by private equity, raising concerns about corporate transparency and the need for a vibrant stock exchange. There is a call for educating investors about the benefits of investing in the real economy rather than just cryptocurrency.
Another target for the campaign could be HM Treasury, as there is a decline in UK equities held by UK insurance and pension funds, and many UK tech startups are opting for the US market. The CBI recommends various measures, including a marketing campaign and encouraging UK pension funds to invest more in UK equities.
One proposal is to abolish stamp duty for trades within Isas to make London more competitive internationally. The Treasury needs to pay more attention to prevent the hollowing out of the stock market, which could have long-term consequences.
According to the source: The Guardian.
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