The London Stock Exchange is exploring stronger ties with China in an effort to rejuvenate its market presence. This strategic move comes as TUI, Europe’s largest travel operator, decides to abandon its London listing in favor of Germany's Frankfurt exchange.
Shareholders in TUI voted to delist from London, aiming to simplify the company's structure and enhance liquidity. This decision follows TUI's latest quarterly results, which showcased better-than-expected profits.
The departure of TUI is part of a broader trend affecting the UK’s financial landscape. Since 2008, the number of UK-listed companies has decreased by 40 percent. In 2021, there were 120 new listings on the London Stock Exchange, a number that has since dwindled to fewer than 30 last year.
In comparison, the London Stock Exchange raised $972 million in new share issues in 2023, starkly contrasted by Nasdaq’s impressive $13 billion. These figures highlight the challenges faced by the LSE and underscore the potential impact of forging closer ties with China's burgeoning market.
As the LSE seeks to adapt to the evolving global financial environment, strengthening connections with China could provide the necessary boost to attract new listings and reinvigorate investor interest.
Reference(s):
cgtn.com
