The participation of foreign investors in the ownership of listed companies has decreased by 1.1% over the past year, to 48.8%. International shareholders remain the leading group in real estate, but in Spanish stock exchanges and markets (BME) suspect that the declines will continue due to the intervention of Sanchez in the stock market with new taxes and attacks on different investment vehicles.
The report of BME Studies Department ‘La propiedad de las acciones cotizadas’ means that the elevadas cifras de participation de los inversores extranjeros “subrayan la importancia de cuidar sur presencia” para que las empresas can benefite de los flujos de inversión global que, de otra manera, “its difíciles de obtain”. The manager of the Spanish stock exchange fears that this situation will disappear.
“It is important that policy makers understand that taxation is one of the most impactful policy areas in achieving the most desirable goals for more balanced and resilient economic growth,” the BME state.
The manager of the Spanish stock market is clear on the need to end the tax on Financial operations (FIT), known as ‘Tobin dish‘ and this applies from January 2021. A year later, international investments have plummeted. “The strong presence of foreign shareholders in the main Spanish companies and the importance of the stock market to provide value and liquidity should be strong arguments against the ITF” given the current situation of the economy and markets.
BME is clear: “It is a tax that is not agreed with the union Europeanthe Spanish stock exchange, and therefore the main listed Spanish companies, are unfairly penalized as an investment alternative. This has perverse effects for Spain as an investment destination”.
The manager of national parks speaks of “lack of decisionof the government to support an internationally competitive “fiscal card” given the “need for capital of the Spanish economy”. The criticism goes further and speaks of “lack of sensitivitywith the disappearance of incentives to invest in SMEs through collective investment vehicles, the treatment of sicavs, ETF listings, investment certificates on the Spanish stock exchange or socimis. This last vehicle is “highly appreciated by international capital”.
The Stock Exchange is clear that the presence of international institutional funds and investors in Spanish companies “are decisive elements to achieve dimensions more in line with current competitive requirements”. Highlights the plan to promote the European Capital Markets Union (CMU), which includes as a fundamental element the promotion of measures that encourage the financing of companies by the markets.
The situation is also changing Spanish institutional investors poorly representative of listed Spanish companies. Together they represent 7% of market capitalization at the end of 2021. This is a rebound of 6 tenths compared to 2020, but still far from its maximum level recorded in 1997 and 1998 when they represented 10.2% of the total value. of the Spanish bag.
BME talks about “lack of incentives for the Spanish institutional investor to support the fabric of listed companies”. The situation translates into a “handicap”, especially for small listed companies “which attract less foreign investors”. The leader believes that to reverse this situation, it is “important” that national authorities keep it in mind “at such a delicate economic moment and with such intense challenges of competition, change and transformation”.