Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

NZ capital markets – new direction needed

NZ capital markets – new direction needed

Just a single IPO and Xero’s decision to leave for the ASX were the biggest disappointments in a difficult year for the NZ capital markets in 2017, says Simpson Grierson.

The law firm says NZX’s recognition of the need for change - underscored by its market consultation on the merits of differential boards - is only a step in the right direction and that broader changes are required.

Simpson Grierson Partner James Hawes would like to see the marketplace explore ways to set itself apart from other regions rather than simply attempting to close the gap to global peers.

“The NZX’s proposed changes to streamline through board consolidation, reduce compliance costs and support better product diversity are a good indication that new ideas are being explored to further develop the NZ capital markets,” says Hawes.

“We expect that the growth of KiwiSaver will bolster a strong NZ capital market in 2018 but the key opportunity lies in differentiating our offering from those of other regional markets – for example, through a focus on agriculture, infrastructure financing or co-operatives - while still supporting domestic champions.”

The law firm believes that given the current national focus on infrastructure and the need for private money, there is an opportunity for NZX to act as a host for those vehicles which connect retail investment with the projects that need it most.

“Infrastructure investment is an urgent priority and the Government has stated it is open to ‘innovative finance mechanisms’ – including public-private partnerships,” says Hawes.

“This tells us that private money will have a role to play in financing these projects, both at the central and local government level, especially as authorities look to get crucial infrastructure underway without upsetting debt levels.”

Hawes says that one obvious way to fund these types of projects is through BOOT models or third party ownership of the infrastructure asset, but also expects authorities to explore every option.

“This should open up a range of investment opportunities that could be structured as infrastructure bonds, managed investment products or listed equity.

“In any event, by positioning itself as the host for investors to access these investment vehicles, NZX would be empowering New Zealanders to build the facilities their country needs.”

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


FMA: Files Civil Proceedings Against Kiwibank For False Or Misleading Representations Over Fee Waivers

The Financial Markets Authority (FMA) - Te Mana Tātai Hokohoko has filed High Court civil proceedings against Kiwibank for making false and/or misleading representations, under the fair dealing provisions of the Financial Markets Conduct Act (FMC Act)... More>>

ALSO:


What Lies Beneath: Is The Housing Market Turning?
Rising interest rates, combined with further tightening of credit availability appear to be dampening the enthusiasm of investors and first home buyers. While house values continue to rise, what lies beneath QV's latest figures is growing evidence that price pressure has shifted... More>>



R&NTU: KiwiRail strike notices withdrawn following new offer

Strike notices on KiwiRail have been withdrawn. Rail and Maritime Transport Union General Secretary Wayne Butson says following negotiations between the RMTU and KiwiRail, a new offer from KiwiRail will be taken back to union members for ratification... More>>


Reserve Bank: Deputy Governor Reflects On Time At RBNZ
Central bankers must continue to look forward to guard against the unpredictable, Deputy Governor Geoff Bascand says in a speech published today. Mr Bascand joined the Reserve Bank of New Zealand – Te Pūtea Matua in 2013 during the aftermath of the Global Financial Crisis... More>>


Xero: Data Reveals ICT Expenditure Key To Small Business Sales Growth
Xero, the global small business platform, today released a new report which shows New Zealand small business ICT expenditure has increased 25 percent compared to pre-pandemic levels - more than the UK (20%) and Australia... More>>


Fonterra: Lifts Forecast Farmgate Milk Price Range And Revises Earnings Guidance At First Quarter Update

Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range, reported a solid start to the 2022 financial year and revised its earnings guidance... More>>


Canterbury Museum: New Research - Bald Haast's Eagle Feasted On Moa Guts

New Zealand’s extinct Haast’s Eagle (Hieraaetus moorei), the largest known eagle, gulped down viscera like a vulture and may even have been bald, new research suggests... More>>