Logo of Phnom Penh Post newspaper Phnom Penh Post - Robust securities market attracting more investors



Robust securities market attracting more investors

Content image - Phnom Penh Post
HE SOU SOCHEAT, The Director-General of SERC

Robust securities market attracting more investors

The securities sector has been established under the wise leadership of Samdech Akka Moha Sena Padei Techo Prime Minister Hun Sen.

To ensure the development of the securities market with transparency, efficiency, accountability and good order, the Securities and Exchange Commission of Cambodia (SECC) was established under the Law on the Issuance and Trading of Public Securities, which was approved on October 19, 2007, Chaired by HE Keat Chhon, Former Deputy Prime Minister, Minister of Economy and Finance for the first mandate, and after that Chaired by HE Aun Pornmoniroth, Deputy Prime Minister, Minister of Economy and Finance.

According to the Law on the Issuance and Trading of Non-Government Securities, SECC was established in July 2008 and officially inaugurated on April 29, 2009.

SECC granted approval to the Cambodia Securities Exchange (CSX) to be a securities market operator, securities clearing and settlement operator, and securities holder.

On January 16, 2021, the Law on the Organization and Functioning of Non-Banking Financial Service Authority was adopted.

The SECC was then renamed the Securities and Exchange Regulator of Cambodia (SERC), and chaired by HE Dr Aun Pornmoniroth, deputy prime minister and Minister of Economy and Finance.

The Phnom Penh Water Supply Authority became the first listed company in the history of the Cambodian securities market after it was listed on April 18, 2012. From the beginning until now, we have achieved numerous achievements, such as:

Regulatory Framework: SERC has prepared two laws and seven sub-decrees, and adopted 76 prakas and guidelines, as well as many other official letter forms.

Licensing /approving/accrediting key players in the market: We have licensed/approved/accredited 123 companies, which are key players in the market.

These include securities companies, financial advisers, investment advisers, collective investment scheme businesses, bondholder representatives, custodian agents, securities registrar agents, transfer agents and paying agents, cash settlement agents, law firms, accounting firms and asset valuers.

Approved listed companies: To date, we have nine companies listing their stocks on the CSX, with seven on the main board – a market for large enterprises with capital of at least $7.5 million – and two listed on the growth board – a market for small and medium enterprises with capital starting from $500,000. Seven companies listed nine bonds.

The 16 listed companies have raised capital amounting to $281.8 million from the market.

Investor identification numbers and market data: SERC has provided 31,640 investor identification numbers, of which 34 per cent were to female investors.

And 86 per cent were Cambodian investors. The number of investors increased significantly in 2018 – 11,714 investor identification numbers were issued.

As of May 13, 2021, we have market capitalisation of seven per cent of GDP in 2020.

Raising awareness and building confidence in the market: SERC has organised 150 training programmes nationwide, with around 20,000 participants attending.

SERC has also established the Securities Regulator of Cambodia Telegram channel – on which to disseminate new knowledge and information related to the securities sector – and the SERC Alert Telegram channel – on which to spread knowledge and remind investors as well as the public to be cautious of fraud.

Market diversification: In the current market, we have stocks and bonds, and we are ready to allow green bonds in the market as well, supported by Asian Development Bank.

In the future we will have collective investment schemes and futures securities markets.

With the launching of CSX Trade today, I believe that market trading activities will increase as it is even more convenient to trade. Investors can download the app on iOS and Andriod.

I would like to congratulate the many achievements over the past decade under the leadership of HE Dr Hean Sahip, secretary of state at the Ministry of Economy and Finance, and chairman of the board of CSX, and HE Hong Sok Hour, the CEO of CSX.

On the occasion of the 10th anniversary of CSX, I am optimistic that CSX will have more companies to list, and for more active trading activities in the market to achieve the expected high-yield results, as well as to compete with the ASEAN markets.

The development of the securities market requires the participation of everyone – all together for the securities sector; the securities sector for all!

Thank you.

MOST VIEWED

  • ‘Education’ a priority traffic-law penalty

    A top National Police official on June 21 neither rejected nor confirmed the authenticity of a leaked audio message, which has gone viral on social media, on a waiver of fines for a number of road traffic-related offences. General Him Yan, deputy National Police chief in

  • Pursat Ford assembly plant opens

    The Kingdom’s first Ford assembly plant was inaugurated on June 16 in Pursat province amid rising demand for brand-new vehicles among Cambodians. The facility is seen as a game changer for the domestic automobile industry, which could bring a wave of investors seeking to cash

  • Siem Reap’s $18M zoo said to educate public, help wildlife

    Angkor Wildlife and Aquarium Co Ltd has invested $18 million in a zoo in Siem Reap province, which will be opened in October to educate and promote animal conservation as well as attract national and international tourists. Currently, the Angkor Wildlife and Aquarium is building the

  • Angkor photo rules clarified

    The Apsara National Authority (ANA) denied that it had banned the use of camera tripods in the Angkor Archaeological Park, explaining that the confusion stemmed from a long-standing rule which required commercial photographers and videographers to apply for permission to film. The explanation followed a

  • $50B infrastructure plan en route

    The government’s upcoming $50 billion,10-year infrastructure master plan will provide tremendous investment opportunities for domestic and foreign entities, transport experts and economists say. Minister of Public Works and Transport Sun Chanthol revealed the plan to Japanese ambassador to Cambodia Masahiro Mikami on June 15. At

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “