Geopolitical tensions lead to drop in company IPOs - study - KCTV5 News

Geopolitical tensions lead to drop in company IPOs - study

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(AP Photo/Shuji Kajiyama). People walk past an electronic stock board of a securities firm in Tokyo, Thursday, June 14, 2018. Asian stock markets slumped on Thursday with South Koreans stocks plunging 1.6 percent on the first day of trading after an un... (AP Photo/Shuji Kajiyama). People walk past an electronic stock board of a securities firm in Tokyo, Thursday, June 14, 2018. Asian stock markets slumped on Thursday with South Koreans stocks plunging 1.6 percent on the first day of trading after an un...

LONDON (AP) - A survey shows that companies' initial public offerings of shares fell by a fifth in the first half of 2018 due to geopolitical tensions like Brexit and the threat of trade wars.

In a report released Thursday, law firm Baker McKenzie cites the lack of progress in Britain's exit from the European Union and U.S. President Donald Trump's decision to impose tariffs on several countries.

IPOs held in the countries where companies are based fell by 18 percent in volume from a year earlier. Cross-border IPOs held up better, increasing by 15 percent.

Despite concerns over protectionism, over half of Chinese issuers listing abroad in the first half of the year chose U.S. exchanges over Hong Kong.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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