London’s shrinking stock market

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The travails of the LSE reflect deeper problems in the UK’s business environment

It has been a particularly bad year for the London Stock Exchange. A total of 88 companies have delisted or transferred their primary listings from the market, with just 18 taking their place. That marks its biggest net outflow of companies since the financial crisis. New listings on the UK’s main market are also set for their weakest annual run in 15 years.

Jeremy Hunt, the former chancellor, made sensible reforms to simplify the listings regime and make it easier for foreign issuers to list in London. Reeves has made a welcome push to consolidate the UK’s vast and sprawling pension capital, to help incentivise investments in higher-risk equity assets; pension funds have dramatically shifted their portfolios away from UK equities over the past decade, sapping market liquidity in the process. The new reforms will take time to bear fruit.

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