The evolving state of New Zealand’s capital markets
With September marking 150 years of New Zealand’s stock exchange (NZX), Te Paehoko o Aotearoa, and the release of the Capital Markets 2029 review (led by NZX and the FMA), our recent PwC Non-Executive Director Programme forum provided a timely opportunity to come together and discuss - The evolving state of New Zealand’s capital markets.
At this forum, hosted in conjunction with Chapman Tripp, our panellists (below) explored some fascinating dynamics as we looked ahead at the role small exchanges like our own play in a global capital market awash with an array of investment products spanning many different platforms.
- Roger Wallis Partner - Chapman Tripp
- Brian Gaynor market commentator and Non-Executive Director of Milford Asset Management
- Gavin Lonergan Director - Direct Capital
- Pip Greenwood Independent Director - Spark, A2 Milk, Fisher & Paykel Healthcare, Westpac
It was interesting to reflect on how dramatically KiwiSaver has altered the investing landscape in New Zealand since its inception. While the total pool of KiwiSaver funds under management continues to grow, opportunities for investing these funds locally are limited by a supply issue in the public side of our capital markets. Our panel also commented on the scope to make it easier for KiwiSaver funds to be invested in Private Equity and other private capital opportunities.
Another key takeout from the panel discussion was that our private capital markets are currently working really well. As a result, quality companies have a better chance of finding capital.
Reflecting on some of the NZX success stories, it was interesting to observe that vendor behaviour has driven some of the significant successes - including the recent Napier Port IPO - which highlighted the importance of engaging with key stakeholders and leaving some value on the table.
Regardless of our future economic landscape, access to capital and widespread investor participation in capital markets will likely remain important ingredients of business growth and our economic wellbeing.
You’ll find an overview of key insights from our panellists in our short video. For more on this topic, a useful reference is the global PwC study; Capital markets in 2030 - The future of equity capital markets. If you would like to explore further insights for boards, then please get in touch
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