A fund manager says only the partial flotation of Kiwibank or the public trading of some Fonterra shares would be enough to jump-start New Zealand's stagnant capital markets.
The performance of the capital markets has been under the spotlight in recent days as offshore investors plan to take or lift stakes in two of New Zealand's agricultural companies.
Olam International of Singapore has launched a takeover worth $110 million for New Zealand Farming Systems Uruguay and Bright Dairy of China plans to pay $82 million for a 51% stake in Synlait Milk.
Last year, Synlait Milk deferred plans to float on the stock market, partly due to a lack of interest from small investors.
Milford Asset Management executive director Brian Gaynor says capital markets, particularly the share market, are the quietest they have been in his 35-year involvement in the industry.
Mr Gaynor says a lack of listings is turning investors away and he believes more companies will have look overseas to fulfill their capital needs.
He says a partial flotation of Kiwibank and a partial sale of Fonterra to the public would "really excite" the market - but they are not going to happen.
Mr Gaynor also says New Zealand's agriculture sector will continue to lure foreign investors, particularly from Asia.