AstraZeneca Listing Shift Signals Deepening Concerns for London Stock Exchange
London – AstraZeneca’s decision to consolidate its listing structure, effectively reducing its primary presence in London, underscores a growing crisis for the UK capital’s stock market, financial analysts warn. The move,described as a “harmonisation” by the pharmaceutical giant,is viewed as a notable blow to the London Stock Exchange (LSE) and highlights the urgent need for reform,especially regarding stamp duty on shares.
The company’s rejig – announced recently – will create a single line of shares, moving away from a dual-listing structure. While AstraZeneca maintains it remains committed to the UK, the shift is widely interpreted as a response to the LSE’s declining competitiveness and investor appeal.
Critics, including Nils Pratley writing in The Guardian, argue that the current stamp duty on shares – a tax on share transactions – acts as a deterrent to investment and paints a negative picture of London as a financial hub.Pratley contends the tax should be abolished,and if the Chancellor requires £3bn-£4bn in revenue from financial transactions,an choice design should be found.
The core issue extends beyond attracting multinational corporations. Experts emphasize the need to cultivate a stronger base of domestic investors in UK equities, encompassing both pension funds and retail investors. Currently, efforts to encourage pension funds to increase allocations to private assets like infrastructure and private equity are being prioritized, while the essential appeal of transparent public markets – where the most pressing issues lie – is being overlooked.
AstraZeneca’s move is not isolated. It reflects a broader trend of companies seeking more favorable listing environments, raising concerns about the long-term viability of London as a leading global financial center.
