Cambodia’s new exchange will fail without listing incentives

Author: | Published: 15 Jul 2011

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 Cambodian economy.

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...