Stockholm’s Stock Exchange is currently thriving compared to the rest of Europe, with a government debt ratio that is half that of Finland. EU officials recently went on a study trip to Stockholm to understand why the Nasdaq Stockholm stock exchange is in high demand. During the trip, the management of the Stockholm Stock Exchange presented the local capital market ecosystem, highlighting how many small and medium-sized companies have chosen to list on the exchange.
Sweden has implemented incentives that have resulted in over 500 companies being listed on the Stockholm Stock Exchange in the past eleven years, surpassing countries like France, Germany, Holland, and Spain combined. In contrast, Helsinki has seen only a few IPOs in recent years, emphasizing the difference in vibrancy between Sweden and Finland’s stock markets.
One of the reasons for Sweden’s active capital market is due to Swedish pension funds playing a significant role in listing activities by emphasizing domestic shares and contributing to its success. However, this trend is not replicated in other European countries like Britain and Finland where share investments from pension funds have decreased due to slow price development of domestic shares.
To stimulate the stock market in Europe, regulatory changes and encouraging investments in domestic stocks are being made following Sweden’s successful model. The study trip to Stockholm shed light on how important it is for countries to have a thriving stock market ecosystem and how incentives can promote market activity and attract companies to list on their respective exchanges.
