Leading investors have issued a stark warning that the ongoing overhaul of the London Stock Exchange (LSE) risks undermining trust in the UK’s primary equity market.

The concerns come as the exchange faces a persistent structural contraction, with the number of companies leaving the market significantly outstripping the arrival of new listings.

The warnings highlight growing anxiety among institutional capital providers regarding the long-term viability of the LSE as a global listing hub.

Investors argue that without credible reforms to address the net outflow of companies, the market’s liquidity and attractiveness to foreign capital could deteriorate further.

The sentiment reflects a broader unease about the regulatory and operational environment governing UK equities.

This development adds to a series of critical assessments from the financial community.