Govt Unveils Reforms to Boost NZ’s Capital Markets and Productivity

The Government is also targeting barriers that discourage companies from listing on the NZX, including high compliance costs and stringent disclosure requirements.

The Government is launching a comprehensive package of reforms to enhance New Zealand’s capital markets, aiming to boost infrastructure investment, support local businesses, and improve productivity, Commerce and Consumer Affairs Minister Andrew Bayly announced today.

“Kiwis work incredibly hard but often do not see the same returns for their effort as in other advanced economies. This reform package is designed to turn that around by addressing one of the key barriers to growth—New Zealand’s relatively shallow capital markets,” Bayly said.

The proposed changes focus on:

Unlocking KiwiSaver Funds: Allowing greater investment in unlisted assets such as infrastructure and innovative New Zealand businesses, benefiting both the economy and KiwiSaver members.

Making the NZX More Competitive: Reducing costs and barriers for companies listing on the New Zealand Stock Exchange to encourage local listings.

Leveraging KiwiSaver for Economic Growth

Currently, over $120 billion is invested in KiwiSaver, with the majority parked in overseas stock markets and only 3% allocated to unlisted assets. By contrast, Australian superannuation funds invest around 16% in unlisted assets.

“This represents a missed opportunity for New Zealand. By channeling KiwiSaver funds into domestic infrastructure projects like transport, renewable energy, and housing, we can create a win-win scenario: businesses gain access to much-needed capital, and Kiwi investors enjoy diversification and potentially higher returns,” Bayly explained.

Revitalizing the NZX

The Government is also targeting barriers that discourage companies from listing on the NZX, including high compliance costs and stringent disclosure requirements. Proposed changes include:

• Flexible Financial Disclosures: Easing the burden of providing prospective financial information during IPOs.
• Climate Disclosure Adjustments: Aligning New Zealand’s climate-related reporting requirements with international standards, particularly Australia’s.

“These steps are crucial as only a handful of companies have chosen to list on the NZX in recent years. We need to create an environment where capital markets can thrive, fueling competition and innovation,” Bayly noted.

Future Work and Broader Goals

Beyond these immediate changes, the Government has committed to further work in 2025 to deepen New Zealand’s capital pools and improve economic resilience.

“Vibrant capital markets are essential for tackling productivity challenges and addressing failing infrastructure. These reforms will empower Kiwi businesses to grow, innovate, and compete globally while ensuring hardworking New Zealanders benefit from higher living standards,” Bayly concluded.

This initiative forms part of the Government’s broader economic strategy to address lagging productivity, modernize infrastructure, and stimulate long-term economic growth.