Creating stock exchange in the Kingdom of Cambodia is the initiative between Cambodian government and Korea Exchange since 2007. Cambodia Securities Exchange (CSX) will be held 55 percent by Cambodia and 45 percent by Korea Exchange. The both sides planned to open it at the end of 2009 but the plan failed because of the global financial crisis.
Cambodia Securities Exchange was launched officially on July 11, 2011 after the government delayed it several years. Opening stock market in Cambodia has been applauded by government officials, investors and academics. It is expected that the process of stock market is advancing transparency throughout the country and making way for boosting Cambodia’s economic growth.
By the way, it is good for businessmen and investors who are able to expand their business by issuing stocks as a way of raising more and more cashes and selling stocks is cheaper than taking a loan from commercial banks. At the meantime, local business and investors will have opportunity for expanding their investments by buying property or putting their money in the banks.
Giving speech at the opening of the CSX, Finance Minister Keat Chhon said that trading was expected to begin by the end of the year. He said that there are three state-owned firms, including the Phnom Penh Water Supply Authority, Telecom Cambodia and the Sihanoukville Autonomous Port, having announced plans for listing.
Planning to launch a stock market is needed to find new ways to attract international capital besides international aid and bank loan. In addition, the National Assembly also approved a securities law on insurance and trading non-government securities in order to pay the way for the market.
The Southeast Asian countries which opened a stock market are Singapore, Thailand, Laos and Vietnam.
No comments:
Post a Comment