Cambodia Securities Plc. organised the ‘Cambodia Securities The First Capital Market Summit Forum’ on August 22, 2024 at the Sokha Phnom Penh Hotel, promoting the development of Cambodia's capital markets and securities sector.
The forum was presided over by H.E. Hun Many, Deputy Prime Minister and Minister of Civil Service; H.E. Dr. Vin Pheakdey, Deputy Director General of the Securities and Exchange Regulator of Cambodia (SERC); and H.E. Hong Sok Hour, Chief Executive Officer (CEO) of the Cambodia Securities Exchange (CSX).
The event was attended by around 500 participants, including international guests from Singapore, China and Hong Kong, as well as 300 entrepreneurs from Cambodia.
During his special remarks, H.E. Hun Many noted that the further development of Cambodia's securities sector will require the time and involvement of all relevant parties from both the public and private sectors. He stressed that information about favourable incentives provided to businesses by the Cambodian government should be widely disseminated to attract more investors to the country, with one way to achieve this being hosting more events like the ‘Cambodia Securities The First Capital Market Summit Forum’.
With more investors coming to Cambodia, this could potentially increase the number of companies that meet the requirements and credentials to list on the CSX, which can, in turn, help to further grow the market.
“Financial technology (FinTech) has high potential to accelerate the securities sector in Cambodia, so both the public and private sectors should leverage and utilise FinTech effectively to strengthen management and expand services, especially to facilitate the trade of securities," Many further added.
Watch a snippet of H.E. Hun Many's speech from the Capital Market Summit Forum:
On the development of the Cambodian securities market, H.E. Hong Sok Hour reiterated that there are currently 23 companies listing on the CSX – 11 listing equities, and 12 issuing bonds – who have collectively raised close to USD 400 million on the exchange.
He added:
Even though our trade volume remains low [compared to other markets], the CSX has significantly increased, 14 times that of the initial average trade value of USD 20,000, reaching nearly USD 300,000 per day in 2023.
Sok Hour highlighted the utility of the securities market in Cambodia for businesses, allowing them to raise capital for their business needs, and also potentially helping to increase a company's reputation among relevant stakeholders. He emphasised the presence of the securities market in Cambodia as a new investment tool that can create a passive source of income.
Additionally, he shared that increased activity on the CSX is also reflected in the increasing number of new investors joining the market, with more than 1,000 new trading accounts being opened every month.
Watch a snippet of H.E. Hong Sok Hour's speech from the Capital Market Summit Forum:
During his opening remarks, Darren Teng, Managing Director of Cambodia Securities Plc., also expressed his belief that the Cambodian securities market will experience a wave of listings within the next three years, particularly following the Cambodian government's policy reform initiative, which includes reforming the tax system.
He also announced that Cambodia Securities Plc. will soon launch Pre-IPO funds that will invest in local enterprises to help them grow.
Key Presentations Delivered At The ‘Cambodia Securities The First Capital Market Summit Forum’
Kicking off the presentation segment of the forum, Buth Kerady, CEO of Cambodia Securities Plc., delivered a keynote speech highlighting that Cambodia’s capital market is “on the verge of a golden decade”, with an expected “wave of corporate listings on the horizon".
As a key promoter of capital market in Cambodia, she emphasised that Cambodia Securities Plc. holds comprehensive licenses to help companies meet listing requirements and connect with emerging international markets.
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Barrett Lu, Managing Director at Cinda Plunkett International Capital Management Limited (CPICML) – part of China Cinda, one of China's top four asset management companies – also delivered a presentation on ‘Foreign Capital’s Perspective on Cambodia's Capital Market' where he spoke of Cambodia's favourable economic outlook. Some of the main points he highlighted as Cambodia's key appeals as an investment destination were:
- The country's strategic geographic location (which he said is particularly suitable for manufacturers)
- Strong economic growth potential (which he described as “like China 25 years ago”)
- Dollar-friendly monetary system and (FX control)
- Stable political environment
Lu also underlined China's dominant presence in Cambodia's foreign direct investment (FDI) inflows and urged the Kingdom to look to pitching more in China, as businesses in China are increasingly looking to outsource more of its operations and Cambodia should be able to take the opportunity to attract more investment.
Other presentations were delivered by representatives of Singapore Global Trust Pte. Ltd. and First Capital Global Management on introducing pre-IPO trusts to the Cambodian market, and what paths the country has to access global capital markets.
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Cambodia Securities Plc. MoU Signings With Key Partners
Following all opening and keynote remarks, Cambodia Securities Plc. held a short signing ceremony for three memoranda of understanding (MoUs) with First Securities (HK) Limited, Singapore Global Trust Pte. Ltd., and Corporate Connection Cambodia.
The event concluded with a large panel discussion moderated by Buth Kerady on the ‘Journey to IPO in Cambodia’, featuring the participation of both international speakers and locally-based entrepreneurs, including Barrett Lu from CPICML; Ong Chee Keong, Vice-Chairman and CEO of Singapore Global Trust; Kennedy Tsang, Co-Chief Investment Officer of First Capital Global Management; Jack Lee, Founder and CEO of Smile Shop; Thierry Tea, Vice President of OCIC Group; Chy Sila, Co-Founder of Kirisu Farm and CEO and Co-Founder of Sabay Digital; and Samuel Lui, Head of Global Investment Banking at FTAG Investment Bank.
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- Securities And Exchange Regulator Of Cambodia Shares Vision For 2024-2028 And Beyond.
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