The City of London Corporation is set to open its first-ever offices in the US, citing a need to foster closer ties between the world's two largest financial hubs.
The Corporation will establish its presence in both New York and Washington, D.C., with Chris Hayward, the policy chairman of the City of London Corporation, playing a pivotal role in the expansion.
“The US is our biggest trading partner, we absolutely have to have a base there,” said Hayward. “Being present in-market will allow us to forge deeper ties and collaborate on cutting-edge issues that are at the forefront of finance.
“Whether that be fintech, asset management, insurance or professional services. The US represents shared cultural and business values and great opportunity for UK firms.”
Though framed as a diplomatic endeavour, the announcement also comes at a time of crisis for the British capital markets.
Data from investment platform XTB today suggested that initial public offerings on the London Stock Exchange are set to hit a record low in 2023, following a dire year prior.
Only 56 companies have applied to list on the LSE's main market in 2023, a stark contrast to the average of 112 companies annually between 2018 and 2022.
Out of these applications, only 30 have been approved by the Financial Conduct Authority (FCA).
The dwindling number of IPOs highlights a shift in focus towards the US markets, attributed to higher valuations, increased liquidity, and better compensation for executives in the US.
“This data shows just how rapidly a stock market can lose its popularity,” stated Joshua Raymond, director of XTB.
Raymond added: “It is particularly concerning that in an environment where very few companies are looking to go public we are seeing such a high proportion of companies fail to make the grade.”
Despite the gloomy outlook, online fashion megacap Shein is reportedly in talks with LSE and associated stakeholders over a possible London flotation.
According to reports, the City of London Corporation will not open its US offices until 2025.
Established in 1067, The City of London Corporation is one of the world's oldest institutions and acts as a governing body for London's Square Mile.
It plays a crucial role in representing the interests of the City to the government and internationally.