Original report from Phnom Penh
24 January 2008
The government signed a stock market contract with Korea Exchange Monday, paving the way for an exchange starting mid- or late 2009, officials said this week.
Korea Exchange is the fourth largest stock market in Asia.
The government plans to allow at least 10 companies—five state run and five foreign—to be listed on the initial exchange, officials said.
The news was met with mixed feelings. Some analysts warn that the rampant corruption and weak rule of law that continually plague Cambodia will sink stock exchange efforts.
But some officials were optimistic the stock market could provide more sophisticated options to investors.
“The Cambodian stock market provides an additional opportunity for a company to collect capital for investment,” said Hang Chuon Narong, general director of the Ministry of Economy and Finance. “Either [the company] deposits money to get interest, or it invests in the stock market.”
The impending stock market, which stems from the signing of a securities law last year, will help strengthen Cambodia’s financial system and will ensure money circulates “smoothly,” said Kang Chan Dararoath, an independent economic analyst.
Opposition leader Sam Rainsy, who was once Finance Minister, encouraged Cambodians to buy shares in stocks to increase their income, but warned extreme caution.
“Our current authorities are corrupt and conspiratorial, and if the stock market is created under these circumstances, I worry that some people can be cheated,” he said. “They could lose a lot of money and become much poorer.”
Korea Exchange is the fourth largest stock market in Asia.
The government plans to allow at least 10 companies—five state run and five foreign—to be listed on the initial exchange, officials said.
The news was met with mixed feelings. Some analysts warn that the rampant corruption and weak rule of law that continually plague Cambodia will sink stock exchange efforts.
But some officials were optimistic the stock market could provide more sophisticated options to investors.
“The Cambodian stock market provides an additional opportunity for a company to collect capital for investment,” said Hang Chuon Narong, general director of the Ministry of Economy and Finance. “Either [the company] deposits money to get interest, or it invests in the stock market.”
The impending stock market, which stems from the signing of a securities law last year, will help strengthen Cambodia’s financial system and will ensure money circulates “smoothly,” said Kang Chan Dararoath, an independent economic analyst.
Opposition leader Sam Rainsy, who was once Finance Minister, encouraged Cambodians to buy shares in stocks to increase their income, but warned extreme caution.
“Our current authorities are corrupt and conspiratorial, and if the stock market is created under these circumstances, I worry that some people can be cheated,” he said. “They could lose a lot of money and become much poorer.”
4 comments:
Congratulations, the beginning of a new era for Cambodia. Thank you Korean gov't.
This is a good thing for Khmer companies that can meet the requirements for listing. What I don't like about it, is that the RG is a 51% owner of the stock exchange- it should be private, and secondly that "state owned" companies will be allowed to list. In that case we will have the securities exchange run by the RG, the stock exchange majority owner is the RG, and the state companies listed owned by the RG.
i am agree with 4:50 AM, and i support Korean gov't and our gov't Now to agree all kind of rule to protect all kind of investors.
Only the unwise investors would invest in the Cambodian stock market.
Go right ahead, if you're looking for volatility!
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