The Secretary of the Treasury, Rogelio Ramírez de la O, highlighted the drought of stations that the Mexican Stock Exchange (BMV) is going through.
“The reduced number of Initial Public Offerings (IPO) in recent years is worrying, along with an increase in the number of companies that choose to delist,” he stated during the celebration of the 130th anniversary of the plaza.
He added that another “significant” challenge for the BMV that tests its ability to adapt and evolve is that the stock exchange institution only has 140 issuers, when in the US market there are around 5,000 listed companies.
“A recurring problem highlighted by actors in the financial system and widely studied is the limited depth of the financial markets in Mexico,” he commented.
“In our country, only 140 national companies are listed on the stock market. This figure contrasts with the nearly 5,000 companies in the United States and the nearly 400 companies in Latin American markets such as Chile and Brazil,” he noted.
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The official explained that the lag “is also evident” in the level of capitalization, since according to the World Bank, the market capitalization of the BMV’s domestic companies is equivalent to barely 31% of GDP, well below the average of 120 % in OECD countries.
“The above indicators highlight the need to have a comprehensive strategy that encourages business participation through coordinated work between the private initiative,” he noted.
Jesús de la Fuente Rodríguez, president of the National Banking and Securities Commission, pointed out that the Mexican regulatory framework has created barriers that limit the participation of companies in the stock market.
He said that the reform of the Securities Market Law is a response to the drought that the BMV is going through.
“The recent reform to the Securities Market Law is a direct response to these challenges, its objective is clear, to make the securities market a more agile, simple and less expensive vehicle for Mexican companies,” said De la Fuente.
The Secretary of the Treasury declared that since the creation of the BMV, which dates back to the end of 1894, this center “has evolved” in parallel with the economy.
“Over the decades it has participated in key moments in our economic history, from industrialization to the stabilization policies of the 20th century,” he commented.
Ramírez de la O highlighted that the BMV faced difficulties, such as the financial crisis of 1929, and overcame it “thanks to its adaptability” and capacity for consolidation until the mid-1970s.
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Victoria Rodríguez Ceja, governor of Banco de México, committed to offering the best possible conditions so that the market can continue promoting the country’s economic growth.
Meanwhile, Marcos Martínez, president of the Board of Directors of the BMV, thanked everyone for promoting the growth of the plaza.
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