Hardman Talks | Liquidity – shrinking when it’s most needed

05 Dec 2023 / News Video
liquidity shrinking

In this episode of Hardman Talks, Keith Hiscock and Yingheng Chen discuss the report entitled Liquidity – shrinking when it’s most needed, which was produced in collaboration with Winterflood Securities.

Liquidity is the lifeblood of any equity market. Following the events at the Woodford Equity Income Fund in 2019, professional investors increasingly focus on liquidity when making investment decisions. However, our research shows that the total value of trading companies (excluding investment companies and financials) had declined from 60.6% of their average market capitalisation in 2016 to 44.3% in 2022. There has also been a reduction in institutional interest in the UK equity market, e.g. pension funds.

Can anything be done about the fallen liquidity? We outline some suggestions to help company management teams improve liquidity in their shares.

Find out more in the video.

Watch the interview