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NZX Supports RBNZ’s Financial Stability Report

Auckland, 4 November 2021 – The New Zealand Stock Exchange - Te Paehoko o Aotearoa, supports the Reserve Bank's latest Financial Stability Report and comments by Governor Adrian Orr, both which shed light on the risks associated with New Zealand’s hot housing market and the importance of a diverse investment portfolio.

“NZX's ambition is to see our country grow and prosper. When capital flows into New Zealand businesses, it supports increased investment, creates jobs, and fuels economic growth. However, despite, KiwiSaver going from strength to strength, too much of New Zealanders’ wealth remains tied up in housing", said Chief Executive Mark Peterson.

In the period 2000-2020, the NZX 50 (NZX50) achieved a 900% return on the amount invested. The House Price Index, which measures New Zealand’s house prices, reveals a 300% increase over that same period.

This heightened interest extends to the number of new listings on NZX main board. Recent listings cover a diverse range of sectors, giving retail and institutional investors a variety of opportunities.

Kiwis’ appetite for investing continues to grow, with the total funds under management increasing 4.5 percent to $248b for the quarter ended 30th June 2021. Holdings of listed shares increased 7% to a record high of $119.3b. Listed shares account for 41.2% of total funds under management (compared with 34.6% before the pandemic hit).

Mr Peterson continues, “We know from long experience that a balanced portfolio is not only wealth creating, but prudent. Investing in diverse assets classes and sectors spreads risk and can therefore minimise potential losses.

“NZX is proud of the role it plays in New Zealand's investment landscape, providing a platform for both businesses and investors to grow and reach their potential.”

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