PHNOM PENH, Dec 2 (Reuters) - Cambodia's long-awaited stock exchange could start operating next month, a government official said on Wednesday, after signing a deal with South Korean developer World City Co Ltd to build the $6 million bourse.
Although construction of the new stock market will not be completed for at least eight months, trading will begin in a temporary venue as soon as possible, said Mey Vann, director of the government's finance industry department.
"It has been too long already. We don't have to wait until the construction is complete," Vann told Reuters. "We will begin our operation in January or February next year."
The idea of a Cambodian stock market has been floated since the 1990s but has struggled for traction in a country better known for a culture of political impunity, chronic poverty and a history of violence, including the Khmer Rouge "Killing Fields".
There have also been concerns that Cambodia is trying to move too fast and is not yet ready to have its people to invest in stocks, with big risks to largely inexperienced local investors in a country still blighted by corruption and mismanagement.
The four-storey venue will be built on 6,000 square metres (64,580 sq ft) of former marshland on the northern outskirts of the capital, Phnom Penh, and the design will reflect both Khmer and South Korean cultures.
Vann said the stock exchange would be housed temporarily in the Ministry of Economy and Finance until construction of the bourse was completed.
The exchange expects to start small with just four or five companies issuing about $10 million worth of shares each, according to Korea Exchange, Asia's fourth-largest bourse operator, which will own 49 percent of the new exchange.
Cambodia's Finance Ministry has given priority to state companies to sell stocks and has asked Telecom Cambodia, port operator Sihanoukville Autonomous Port and the Phnom Penh Water Supply Authority to list shares.
(Writing by Martin Petty; Editing by Alan Raybould)
Although construction of the new stock market will not be completed for at least eight months, trading will begin in a temporary venue as soon as possible, said Mey Vann, director of the government's finance industry department.
"It has been too long already. We don't have to wait until the construction is complete," Vann told Reuters. "We will begin our operation in January or February next year."
The idea of a Cambodian stock market has been floated since the 1990s but has struggled for traction in a country better known for a culture of political impunity, chronic poverty and a history of violence, including the Khmer Rouge "Killing Fields".
There have also been concerns that Cambodia is trying to move too fast and is not yet ready to have its people to invest in stocks, with big risks to largely inexperienced local investors in a country still blighted by corruption and mismanagement.
The four-storey venue will be built on 6,000 square metres (64,580 sq ft) of former marshland on the northern outskirts of the capital, Phnom Penh, and the design will reflect both Khmer and South Korean cultures.
Vann said the stock exchange would be housed temporarily in the Ministry of Economy and Finance until construction of the bourse was completed.
The exchange expects to start small with just four or five companies issuing about $10 million worth of shares each, according to Korea Exchange, Asia's fourth-largest bourse operator, which will own 49 percent of the new exchange.
Cambodia's Finance Ministry has given priority to state companies to sell stocks and has asked Telecom Cambodia, port operator Sihanoukville Autonomous Port and the Phnom Penh Water Supply Authority to list shares.
(Writing by Martin Petty; Editing by Alan Raybould)
11 comments:
People who don't go forward, actually go backward. So many times we hear negative comments on economic development in Cambodia. Sure bet, all that is political games. You can be for the stock market or against the stock market. The 2008 economic woes is a result of the cyclical market downturns. And there is always a good and bad corporation, whether in USA, in Europe or elsewhere. You should expect bad apples amongst Cambodian companies which will be listing in Cambodia Stock Exchange.
good for cambodia. of course, everybody got to start somewhere, somehow, really. so, why not cambodia as well? can't wait forever, you know. we only live once in this life time, you know!
i know, it's called pessimistic view. some people, naturally are persimmistic nobody how cambodia is doing it, really. maybe they just don't want to see cambodia grow and develop. however, i'm glad life does go on in cambodia despite some individual's pessimistic view point, etc... of course, there are more to cambodia than you and i, really! who says cambodia can't change for the better, etc.!
unless they still live in the dark ages, perhaps! yes, life in cambodia goes on, really! we've seen its transformation in the process, really!
12:19AM, well yeah let's hope for the better days for Cambodia.. May those who is optimistic like you and me move on and leave behind those peanut sellers (Pouk A Luk Sandek Dei) to cry on..
9.46 pm, agree with you to go forward my mom also used to tell me that.
When it comes to talking about Stock market, it is understood that companies are going to use money of the public. It would imply that companies leaders should be held accountable for the use of this money.
I survived the KR era and I love my country. Nobody is talking politic here in this matter but only to see if we can bring idea to keep our beloved Khmer reputation as people of integrity.
Actually we think that Khmer corporate leaders are not informed enough yet to embrace the SX system which is technically speaking is very complex. Do you really think that the Cambodian in the street now is willing to put a single Riel in the current SX?
We do need more time to train the people of the SX commission, they are young and they have no experience in this field.We need to inform our countrymen of the mecanism of SX and above all we need to clean up our potential national "guinea pig" listed companies in ordre to show the way for others to succed the listing process...
Don't listen to the siren's song: the Koreans come to our country to help us, thank you but also to make money and to promise moutain of gold; well, if the gold won't come, Cambodians will receive stone on their head.
Why source from AP and Reuters are diffirent? Reuters quoted Mr Mey Vann as saying it will start very soon without waiting until the construction is completed. While the AP quoted the same person as saying the market will be started after the completion of the construction.
Why one is reliable? If Mey Vann provided different information, how can we rely on this stock market while there is no transparancy of the information since the beginning?
personally, I agree with you all both optimistic and pessimistic views. we should have a start, but a start with success.I want to see Cambodia has a stock exchange like other countries; however, transparency and corruption are the main concerns of everyone. I also want to invest in stock market, but to me trust and credibility are of the most important criteria to invest. How many of you would like to invest in a high risk business? How many Cambodian who have limited understanding about stock exchange are going to invest? I know you might answer it is not a big deal because there will be alot of educational campaigns.But how are you going to build trust among people who have lost it many times in the history of Cambodia development i.e banking system?
has any one who post here been buying and selling company stocks at a stock exchange in a developped country before? if they have then at least their posts will have credibility, either on the pro or the con side. If not, those posters will not understand that you need a legal, banking and commercial framework that WORK (not one on paper) - because it's like putting the cart before the horse. it's got nothing to do with being backward or anti- progress. it's about avoiding being ripped off by con artists. BTW 10:46PM the 2008 crash is not a *cyclical downturn* it's a once in a life time CRASH that flows from a banking CRASH. It's anything but a "downturn" as you put it.
1:47pm what does "buying/selling a stock" teach you on the mechanism of the stock market? all u need to do is to call up your agent and that's it?
If you don't try how do u know things will not work? Cambodian stocks do have its comparative advantage and perhaps are cheaper..? high risk will attract high return as well. so it's all will be up to the investors to decide.. you don't buy it, i will buy it. so what? oh btw, the crash (as you put it) did stem from the AMERICAN's GREED!.. well u know what i mean.
11:59AM, I find your comment the most considerate one. I am waiting to see either how the Cambodian exchange's going to build trust and credibility among the public.
With full of optimism..
I hope it would be a different organisation from those gov't institutions we see today..
I hope there's no [corrupted] government official involved in the operation of the stock market.. (seem impossible)
I hope there's sufficient level of transparency and accountability of the exchange to the public..
and finally, I hope the opening of the Cambodian Exchange a success!
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