Report

Growing New Zealand's capital markets 2029

A vision and growth agenda to promote stronger capital markets for all New Zealanders
sharemarkets Economic growth New Zealand
Resources
Description

A number of trends that could undermine the effectiveness of capital markets and have long-term consequences for the country’s wealth if left unaddressed:

  • A KiwiSaver regime that encourages saving, but fosters investment predominantly in lower-growth assets and has limited exposure to private markets.
  • A large number of New Zealanders who are not actively participating in KiwiSaver.
  • A two-tier public market that is working well for the larger companies, but is less liquid and effective for smaller companies.
  • A public market that is struggling to attract new listings.
  • Private markets that are working well and growing, but not necessarily serving the full range of New Zealand investors, nor the full range of investment stages.
  • A sound regulatory regime, albeit with areas which could be improved to assist the flow of capital.

Recommendations:

  • Raise the level of individual participation and engagement in capital markets.
  • Offer more choice of investment for individuals, both within KiwiSaver and more generally.
  • Grow the base of companies that can access the public capital market, reduce the barriers to listing where possible and increase motivation for public companies to remain listed.
  • Grow the private capital ecosystem in New Zealand.
  • Use the capital markets to fund infrastructure in New Zealand.
  • Create greater wealth for New Zealanders.
Publication Details
Publication Year:
2019