The dwindling value of New Zealand's stock market is threatening the country's future prosperity, Goldman Sachs warns.
The firm is concerned that years of private-equity takeovers and a lack of listings has drained the vitality of the country's equity market.
Its value has fallen from 56% of the overall economy to below 30%, which Goldman Sachs strategist Bernard Doyle says is far too low, and hinders firms' access to cheap capital to grow.
But he says listed firms with a cornerstone shareholder are more likely to stick around, and help support a vibrant and healthy stock market.
Mr Doyle says there are encouraging signs that may be about to be reversed, starting with potential partial-floats of state-owned assets and the potential float of Trade Me.