AI and Policy Shifts Drive U.S. and Chinese IPO Momentum: NYSE's Ge Forecasts Bright 2025

In a recent discussion at the Southern Finance International Forum, Chenhao Ge, Head of Greater China at the New York Stock Exchange, shared his optimistic outlook for the global and Chinese IPO markets leading up to 2025. Despite the volatility experienced in 2024, Ge identified key trends that have driven positive performance in the U.S. capital markets.

One of the central drivers is the ongoing wave of artificial intelligence. Firms directly involved with AI have seen significant growth, and many listed companies have leveraged AI technologies to enhance efficiency and reduce costs over the past year, contributing to their robust performance.

Furthermore, Ge pointed to the expected monetary policy easing in the U.S. markets as a catalyst for growth. He anticipated that the Federal Reserve's interest rate cuts could reach up to 100 basis points, a consensus that has already encouraged substantial capital inflows into the stock market. Additionally, the business-friendly policies introduced by the newly elected U.S. administration under Donald Trump have reinforced positive market sentiment.

The superior performance in the secondary market has also reflected on IPO activities, with the U.S. markets seeing a marked increase in both the scale and number of offerings compared to the previous years. The projects have become more balanced, ranging from mid-sized to multi-billion dollar deals.

Looking ahead to 2025, in an environment characterized by relatively accommodative global monetary policies, Ge expressed confidence in a continued influx of capital into U.S. equities driven by clear interest rate reductions. He highlighted the importance of staying attentive to policy shifts under the new U.S. government and their implications for the capital markets.

Ge also forecasted a vibrant year for IPOs globally, with an array of high-quality companies preparing to go public. For Chinese companies listed overseas, aside from geopolitical considerations, attention from international investors will focus on China's fundamental policy stance and subsequent developments.

The New York Stock Exchange, as the world's largest stock exchange, hosts over 2,400 leading global enterprises with a total market capitalization exceeding $40 trillion. Ge emphasized the Exchange's commitment to fostering a robust network of Chinese companies and leveraging its brand influence, services, and global ecosystem synergy to support their international capital market endeavors.