Global stock markets migrating to international centers, leaving local economies behind.
The migration of stock market activity to international financial centers is driven by factors like economic growth, stability, income per capita, legal systems, shareholder protection, and open financial markets. As countries improve their fundamentals and technology advances, more capital raising, listing, and trading are moving to international centers. This trend may lead to domestic stock markets becoming too small to support local trading. Emerging economies should focus on establishing strong fundamentals rather than local trading or listing of securities.