Finance

To double the Russian stock market's capitalization, it’s necessary to increase the volume of public offerings multi-fold. Participants at the Financial Congress discussed whether this is realistic and what should be done to attract that many issuers and investors to the market.

Stock market capitalisation plays a significant role in creating wealth for the population, and often draws the attention of financial authorities. But what drives capitalisation growth and what is its ‘optimal’ size? Some of the answers can be found in economic science.

Russian companies became more generous with their dividends. Corporate reports for 2005–2023 show that major corporations provide the largest payments, while third-tier issuers pay dividends most frequently. However, a focus on dividends does not guarantee a return on investment.

Cryptocurrencies have become a riskier asset than they once were and no longer add diversification to investment portfolios. Cryptoassets more and more resemble lottery tickets in terms of risk profile.

AI has become a tool of creative destruction. Companies that incorporate it into their business models will set the tone for the development of their sectors in the coming years. Perhaps AI will also cause a realignment in the trade and economic alliances of countries.

Global lenders are focused on financing development projects in good times. In times of crisis, they switch to stabilisation loans and become ‘firefighters’. This is the role being increasingly played by development banks, data from 11 countries of the Eurasian region show.

From 2022 on, Russian retail investors will be allowed to buy foreign exchange-traded funds (ETFs). This regulatory decision tackles several objectives, from making investments more balanced to encouraging competition among asset management companies.

New legislative requirements for communication with non-qualified investors are meant to enhance the protection of individuals in financial markets and increase market transparency by providing more comprehensive information about financial products to investors.