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I spent last week in Singapore, conducting a technique workshop for a customer there. Singapore gives you a disorienting see of what numerous nonetheless call the "developing world." Ultra-modern properties thrust like shiny sculptures high into the sky. Clean streets, order, and precision would be the norm. And everyone seems to be smiling.

In the leading of numerous company people's minds and headlines will be the Hong Kong Stock Exchange (HKEK), just one,500 miles away, which for your past two many years has created more IPOs when it comes to businesses and total bucks elevated than New york, London, or any other exchange in the planet. (View my podcast here)

Whether or not HKEK will retain its crown in 2011 is in query. It's observed only $8.8 billion in public offerings this year, compared to $23.8 billion for New york and $12.two billion for London. But consider the make-up of businesses that are choosing to list in Hong Kong: MGM China, the China operation with the giant casino business, is raising $1.five billion this week in Hong Kong; Italy-based Prada made the decision Hong Kong was an improved market for its IPO previously this year compared to Borsa Italiana or the London Stock Exchange; Samsonite, the American luggage maker founded in 1910, has selected Hong Kong for its IPO. When asked why he selected Hong Kong, Samsonite's CEO, Tim Parker, informed The brand new York Occasions, "We want to orient the organization to exactly where the world's middle of gravity will be within the future." You will find at least two important lessons I believe we are able to draw from the tale of Hong Kong's current IPO dominance:

1) The middle of gravity is shifting. A McKinsey study predicts that over the following 50 years the developing planet will lead much more to global GDP growth compared to developed planet, some thing that hasn't occurred for 200 years. And also the middle of the creating planet, for now at least, is in East Asia.

2) You need to align your traders with your technique. Numerous businesses select Hong Kong not because of valuations (actually Asian exchanges have been underperforming New york or European exchanges this ear) but rather simply because their long-term development aspirations lie in doing more business in Asia. By growing the proportion of traders who reside in Asia, they more closely align their investor base with their strategy.

There's so much more say about what I am seeing here in Singapore--the vibrancy, the diversity, the cultural and company practices variations. But within the interest of giving you 1 very important nugget to chew on, think about why so many smart businesses are choosing to problem IPOs in Asia, shunning vibrant markets closer to house. What exactly are the implications for the business even when an IPO is not in your near-term plans? You will find a minimum of two:

1) The middle of gravity is shifting. Are you taking Asia seriously enough?

2) Investors aren't just money resources; they shape what your business does and how it sees the world. Does your investor makeup fit your long-term aspirations? If not, which traders do you need to change?

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