The amount raised by companies from equity capital markets during the first half of the year was the lowest in five years.
Global equity markets issuance has reached $309bn so far this year, marking the slowest start since 2005, as sovereign debt fears soured investor confidence, the Financial Times reports.
Issuance during the second quarter was down 48 per cent from the same period last year, reaching just $139bn, according to Thomson Reuters.
US companies were the most active, accounting for nearly a quarter of issuance, followed by Chinese companies.
"Expectation levels were very high and with a difficult initial market backdrop there were some over-ambitious transactions falling through," said Henrik Gobel, co-head of European equity capital markets at Morgan Stanley.
However, Mr Gobel was upbeat about the second half.
World's biggest share sale starts in China
A share sale at Agricultural Bank of China, which looks set to be the world's biggest initial public offering (IPO), has begun in Hong Kong, the BBC reports.
UK-based Standard Chartered has said it will invest $500m in AgBank.
Retail investors have been queuing outside bank branches to pick up the AgBank prospectus. It will also float on the Shanghai market.
But some analysts are saying it is the weakest of China's largest lenders, due to bad loans on its books and its focus on rural China.
The bank, the last of China's so-called 'big four' to go public, aims to sell a 14% stake for $23bn (£15.3bn).
US scraps plan for $19bn bank fee
US lawmakers last night scrapped a proposed $19bn bank fee as Democrats struggled to secure enough votes to pass the Wall Street reform bill, the Financial Times reports.
Chris Dodd, the Democratic chairman of the Senate banking committee, dropped the fee and proposed new ways to pay the costs of the legislation to win the vote of Scott Brown, a Republican senator, who said he could not vote for the bill if it stayed in.
The new proposal involves ending early the $700bn troubled asset relief programme and increasing the revenue raised by the Federal Deposit Insurance Corporation.
Will remain until completion of OM's managed separation
Dispute over structure of combined group
Financial Guidance and Claims Bill
Favorable tax treatment
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