Washington
13 September 2007
Cambodia may want a stock market, but without a strong rule of law, no one will buy into it, according to lawmaker Monh Sophan, a member of the government coalition party, Funcinpec.
The law aims to encourage investment through a stock market, a new concept to Cambodia that includes the printing of bonds for sale, Monh Sophan said Thursday on "Hello VOA."
The law, on issuance and trading, would pave the way for a stock market in the next two years. It was passed one week after the government announced it wanted to have a stock market by 2009.
A strong market requires investor confidence, something that Cambodia has a hard time generating.
The rule of law must be stronger before investors will entrust their money to a stock market or other securities, Monh Sophan said.
A non-transparent, non-neutral stock market will not succeed, he added.
Kang Chandararoth, a Cambodian economist, has said that a committee of nine leaders from various national agencies will have to keep politics out of the securities market.
"This is critical to its survival," he said recently.
Seventy-nine lawmakers voted for the law, which was based on international best practices, officials said. The law is awaiting final approval by King Norodom Sihamoni.
The law aims to encourage investment through a stock market, a new concept to Cambodia that includes the printing of bonds for sale, Monh Sophan said Thursday on "Hello VOA."
The law, on issuance and trading, would pave the way for a stock market in the next two years. It was passed one week after the government announced it wanted to have a stock market by 2009.
A strong market requires investor confidence, something that Cambodia has a hard time generating.
The rule of law must be stronger before investors will entrust their money to a stock market or other securities, Monh Sophan said.
A non-transparent, non-neutral stock market will not succeed, he added.
Kang Chandararoth, a Cambodian economist, has said that a committee of nine leaders from various national agencies will have to keep politics out of the securities market.
"This is critical to its survival," he said recently.
Seventy-nine lawmakers voted for the law, which was based on international best practices, officials said. The law is awaiting final approval by King Norodom Sihamoni.
4 comments:
Those bond paper are worthless if a mini-enron is running all over the place. How can the Cambodian government, which is cash strapped, enforce the law? They can't. 1 million in your pocket here and there, and the government will shut up about a company's real worth, thus hurting investors.
Who wants to invest in Cambodia stock market? Even I'm an investor, I'm not placing my money with Russian company. How's about Cambodia stock which runs by Hun Sen regime. I don't trust at all. One day Hun Sen will pack all investor's money in his pocket and run away to Hanoi.
Based on the past, Hun Sen got his hands in every institution. There is no independence of institutionality. Every public instituion is a puppet of the ruling party. Once Hun Sen involves, everything stains from neutrality and independence.
Although having stock market will help stimulate Cambodia economy to a new level, I also doubt it very much it will work base on the history of this government to enforce the law of the wrong doer in his CPP connected friends.
they think of stock market as National Open Casino only, take the money and run!!!!!
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