[심층분석] European companies ‘Escape’ in New York stocks

IPO 30 years worst… Acceleration of US stocks such as ARM and Clarna
The crisis of ‘strategic autonomy’ in the capital market “There is no future without structural reform”

[심층분석] European companies ‘Escape’ in New York stocks

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The heart of European financing is stopping. As the European securities exchanges, which once pioneered the world capital market, lost their vitality, promising companies are realizing the ‘stock market exodus’, which crosses the Atlantic and follows the American Dream, the Wall Street Journal (WSJ) reported on the 15th (local time). The European capital market is shaken in front of the powerful power of the US stock market, which is the highest level of technology, centered on technology and artificial intelligence (AI). Beyond capital shift, European leaders are also deepening as ’emergency’, which threatens European economic leadership and strategic autonomy.

◇ The crisis identified by numbers, worst in 30 years

Signs of crisis appear everywhere. Last year, the London Securities Exchange organized a brilliant welcome event that mobilized colored paper and movie music for new listed companies, but it was replaced by product launch or anniversary event because there was no protagonist.

According to the financial information company’s Delogic Statistics, only six places (the lowest in the last three years) have been disclosed in the UK this year. The funds raised are only $ 280 million, the lowest in 30 years. Even if you look at the entire continent of Europe, the size of the IPO has been cut in comparison with last year.

On the other hand, the United States recorded a 38% increase in funds in the same period, with about $ 40 billion (about 55.600 trillion won), and even Hong Kong, which had been stagnant, had more than doubled IPOs, which had a clear contrast with Europe.

Technical leaders such as Sweden’s fintech giant Clarna and the British semiconductor design pride ARM have turned away from their market and chose New York. Turciles of the existing stock market are also being acquired by US companies or are being transferred to the United States after higher growth. The UK’s Wise and Sports betting company Fliter Entertainment are typical, and in the future, machine specialists Ashd and pharmaceuticals Astrazeneca are likely to join the ranks by expanding their US investment.

Euroxst’s Stephen Booz and CEO (CEO) said, “This is a serious warning that makes Europeans who are responsible for the future.”

◇ The gap cannot be overwhelmed… Low corporate value and conservative investment culture

Companies’ ‘European’ phenomenon is not just because of the market atmosphere. Analysts arise that the US and Europe’s fundamental financial ecosystem differences. Four major structural problems work together.

First, it is a conservative investment culture. European households have $ 12 trillion (about 6680 trillion won), or 70%of the savings, to bank deposits with little yield. The 401 (K) system is different from the United States, where people’s stock investments are common.

Second, it is the difference in listing charm. The US market is much more attractive to companies, including huge funding capacity, high corporate value evaluation, and full executive repair.

Third, the gap between the innovation ecosystem. As the foundation for growing innovative companies such as venture capital and private equity funds is focused on the United States, the leakage of promising new companies and core talent in Europe is increasing. Finally, it is the difference in asset returns. Most of Europe’s households and pension funds are difficult to be called by low -income assets.

Deutsche’s chief executive officer (CEO) found this reality, saying, “Asset proliferation will return to Texas teachers and California officials, not European pensioners.”

The direct motivation is to devalue value evaluation. The S & P 500 companies are 22 times the earnings price (PER), while the UK FTSE 100 is 13 times and DAX, Germany, is 15 times. This is because the US will continue to be legendary among signboard companies such as total energy and shell. Of course, some companies, like Ferguson Enterprise, have not been as valuable as expected after moving to the United States. Nevertheless, the footsteps to the United States never endure.

The highly high executive remuneration is also a catalyst that encourages ‘decrease’. Flyer Entertainment’s CEO Peter Jackson’s CEO moved to New York, nearly three times.

◇ The late EU’s response… “Need fundamental change, not technical issues”

European leaders also realized the seriousness of the situation and responded. The UK has introduced ‘Concierge Service’ to solve the differential restrictions of voting rights that technology entrepreneurs prefer and attract companies. The European Union is rebowing the ‘Capital Market Alliance’ plan that binds the capital market of 27 member countries. However, the plan has already been supported for more than a decade, and is still caught in technical issues such as different bankruptcy methods.

Julia Hope, chief executive officer of the London Stock Exchange, complained of confidence, saying, “If we cut ourselves, we should not be surprised at the results.”

Deutsche Souge’s Light Neo CEO (CEO) urged fundamental changes, criticizing Europe’s response only to technical problems. He said in a strong tone, saying that if he left this reality, he would seriously weaken his productivity, growth engine, and social wealth.

“We must leap from technical discussions to fundamental changes. If this is not done, this would be like a crime for future generations.”

Park Jung-han Global Economic Reporter [email protected]