Flows versus friction

FOR decades, US stock exchanges have been taking centre stage in global equity offerings, thanks largely to the US dollar hegemony and America's strong economic leadership.

But a potential paradigm shift is brewing, with global funds gravitating towards Asian issuers that promise greater growth potential. In a sign of accelerating changes, the world's four biggest initial public offerings (IPOs) so far this year have all landed in Hong Kong. The stars look aligned for a new wave of flourishing stock sales in Asia, where economic recovery, listing reforms, technological innovation and currency appreciation are combining to drive an equity capital boom.

A structural shift