London’s emergence as the preferred destination for companies seeking a secondary listing is a particular blow to US investors as it coincides with increasing demand in the US for foreign stocks and depositary receipts.
According to JPMorgan, institutional investment in the American depositary receipt market doubled between 2003 and 2006 to reach $600 billion, up from $500 billion in 2005.
The rise in interest has come about as a result of a fundamental shift in behaviour among US investors. Their holdings of non-US equities have increased to a record high of 18%, according to the Federal Reserve. Many leading investment advisers to US...
