As of December 19, the market had 21 companies listed on the Cambodia Securities Exchange (CSX), where they raised approximately $347.18 million. Hong Menea
The Cambodia Association of Securities Firms (CASF) has been officially launched to serve as the market’s focal point and is the only actor that deals directly with all stakeholders in the industry on a regular basis for the development of the capital market.
Iv Ranarith, chairman of the CASF, noted during the December 19 event that the association was established on July 19, 2023, and is the only national-level body recognised by the Securities and Exchange Regulator of Cambodia (SERC) to represent all securities firms in the country.
“CASF’s objective is to promote and develop the securities industry in Cambodia, implement its actions with close collaboration and serve as a channel of communication with SERC,” he said.
He added that all securities companies and financial and investment advisory firms licensed by the regulator are automatically members of the association. As of December 15, the group had 16 member firms, comprising 13 securities firms and three financial and investment advisory firms.
Ranarith emphasised that the market plays a crucial role in economies, enabling companies to raise funds for investment and job creation, thereby supporting economic growth.
“Likewise, the securities market creates opportunities and a variety of investment options for public investors as well as institutional investors such as insurance companies, public and private funds. For professional investors such as private equity and venture capital funds, the securities market is a viable avenue for them to monetise their investment by selling down their investment stake in the market,” he explained.
“Indeed, had the Cambodia securities market been sizable enough, it would have been a viable solution to the above challenges, and many businesses would have minimised their over-reliance on bank loans, which is the root cause of the rising rate of non-performing loans [NPLs].
“Securities firms play a very important role in developing the industry. We deal with investors, listed companies, potential issuers, the exchange and the regulator. We are the only actor that obtains the most information, feedback and inputs, and therefore we know the requirements of all stakeholders,” he added.
Ranarith said the role of the association is to cooperate with all parties and work with SERC to help shape industry policy, regulation and propose impactful incentive policies for listed companies and investors.
Sou Socheat, director-general of SERC, stated at the ceremony that over the past decade, all parties had to learn together from scratch.
As of December 19, the market had 21 companies listed on the Cambodia Securities Exchange (CSX), where they raised approximately $347.18 million.
He noted that of the institutions, 11 have issued securities and 10 have issued debt securities, including green and sustainable bonds.
“The capital market is a new source of funds and a source of pride for Cambodia. Although our country started operating the capital market later than others and the market size is still small, the implementation and development of the market are in line with regional and global trends,” he stated.
According to Socheat, as of December 19, SERC had licensed and accredited 120 securities companies to operate and provide services.
These include the licensing of 13 securities companies; four financial advisory firms; two investment advisory firms; three securities distributors; five central counterparties; 22 derivatives brokers; 16 fund management companies; eight asset management companies; four companies selling, repurchasing, or repaying; and three fund managers, along with permission and recognition for the other 80 companies.
As of December 13, the regulator had issued a total of 45,870 investor identification numbers, as per SERC.
