More importantly, proceeds from Asia Pacific’s initial public offerings (IPOs) also exceeded the Americas in 2022 for the first time since 2018, with 802 IPOs raising US$108 billion. But with Asia expected to account for over 40% of the world’s GDP by 2030, the region’s capital markets need to expand and develop further to facilitate long-term growth.
Equity capital markets play a critical role in a country’s economic development. As of June, the US equity market is the largest by market capitalisation globally, with a 43% share, followed by Europe (11%), China (~11%) and Japan (5%).
In Asia, as the region’s economies developed and expanded over time, so too have their capital markets; in 2010, total capitalisation across key Asian markets was nearly US$15 trillion ($20.5 trillion), which will double to US$30 trillion by 2022.
