KEY POINTS:
The head of the stock exchange acknowledges New Zealand's sharemarket is "fragile, in some senses" but says a merger with Australia's bourse would be like "hoisting a white flag" on New Zealand's autonomy.
The Government has called for a workshop on strengthening the sharemarket, which is being eroded by a flow of listed companies going overseas or being bought out.
Some of the NZX's top companies are either under due diligence or subject to talk of bids, including SkyCity and Auckland Airport.
Number two listing, Fletcher Building, has said it is considering a move to Australia.
NZX chief executive Mark Weldon agreed concern about the sharemarket's size was "real".
"I think New Zealand is reasonably fragile in some senses but I think were the New Zealand exchange to disappear, you really have completely hoisted the white flag and said we've got no hope."
Weldon said the workshop was a Government initiative.
He declined to talk about what issues might be discussed until after the meeting. But it is understood hot topics could include whether the Government could help by listing or partially listing SOEs (state-owned enterprises) or their spinoffs.
Another issue which has been getting some currency from the National Party of late is private-public partnerships (PPPs) for longer-term infrastructure investments. These could issue bonds rather than raising money overseas.
Likewise, bond issues by local councils may be discussed.
