Cambodia’s new stock exchange will flounder
without the introduction of long-term incentives to encourage
domestic corporations to list.
The Cambodia Stock Exchange (CSX) launched on Monday. It
aims to attract more investors, and add sophistication, to the
But the bourse, a joint venture with the Korea Exchange
(KRX) that owns 45% percent, does not yet have any stocks to
exchange. And, to-date, only three state-owned enterprises have
announced their intention to list: Telecom Cambodia, Phnom Penh
Water Supply Authority and Sihanoukville Autonomous Port.
The former Vice Governor of Korea’s Financial
Supervisory Service (FSS) and current senior securities
regulations adviser at Kim & Chang, Hong Yeol Jeon, told
IFLR that introducing long-term benefits for listed companies
was critical if Cambodia’s corporates were to ever
consider tapping capital markets for funding.
The majority of Cambodian companies rely on banks to raise
capital. Long-term tax incentives, such as a...