The Cambodian securities sector developed significantly in 2022

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Securities and Exchange Regulator of Cambodia director-general HE Sou Socheat (centre right) successful chaired the ASEAN Capital Markets Forum (ACMF) in 2022. SUPPLIED

While some sectors have been affected by the Covid-19 pandemic, the securities sector in Cambodia has developed significantly under the supervision and guidance of the Securities and Exchange Regulator of Cambodia (SERC).

As well as SERC conducting a successful chairmanship of the ASEAN Capital Markets Forum (ACMF) in 2022, market movement also increased noticeably, while two more companies listing on the exchange last year.

JS Land Plc – which received approval from SERC to carry out an initial public offering (IPO) in 2021 – listed its equity on the Growth Board on February 10, 2022. JS Land raised 15,733.9 million riel, equivalent to $3.93 million, from the market.

Royal Railway Plc, listed its bonds on the securities exchange on October 10, 2022. It additionally issued two types of bond on December 23, 2022.

Through the two types of issuance, Royal Railway Plc raised 15.734 billion riel, around $3.93 million, from the market.

In addition, SERC in 2022 also granted approval to Golden Tree Co, Ltd to issue green bonds that comply with the ASEAN Green Bonds Standards. The company listed its green bonds in January 2023.

As of 2022, the total funds raised through the securities market, including equities and bonds, was around $316.91 million.

Since the establishment of the securities market until last year, nine companies have issued equities and listed on the exchange, with total raised funds of around $118.88 million.

Eight firms have issued bonds, raising about $197 million, with a market capitalisation of some $1.83 billion, an increase of 3.95 per cent on 2021.

Meanwhile, the participation of investors in the securities market has also increased remarkably.

In 2022, SERC issued 5,170 Investor Identification Numbers, a rise of 14.37 per cent compared to 2021.

As of 2022, SERC had issued a total of 35,968 Investor Identification Numbers. With the increasing number of investors in the market, the average daily trading value increased by 102.5 per cent compared to 2021.

In 2022, the derivatives market, the part of the securities market that mainly trades in contracts for differences (CFD), including currencies, precious metals, commodities and crude oil, had a total trading value of 1.26 billion riel, around $314.96 million.

In addition, SERC continued to strive to promote and raise awareness of securities, with a focus on providing basic knowledge regarding the sector to the public, students, business owners, public institutions and potential listed companies.

It also organised education to professionals providing services in the securities sector.

SERC in 2022 provided continuing professional education in the securities sector (with 2,389 participants), and 95 training courses for public investors and students (with 12,386 participants).

It also ran 33 training courses for potential listed companies (with 1,520 participants), with 17 for listed companies (with 1,923 participants).

Moreover, SERC was chair of the ACMF in 2022, and during the mandate of its chairmanship, SERC focused on sustainable development, inclusivity and resilience to ensure the timely achievement of the ACMF action plan 2021-2025.

SERC successfully achieved the 2022 Action Plan through the official launch of:

i) The ASEAN Sustainability-Linked Bond Standards ii); the ASEAN Sustainable and Responsible Fund Standards iii); the ASEAN SDG Bond Toolkit Supplement: Legal and Regulatory Aspects for ASEAN Countries iv); and the ASEAN CIS Digital repository
on October 28, 2022.

Along with the many achievements of 2022, SERC also put in place an action plan for 2023, which focuses mainly on capacity building, the launching of a green and sustainable bond market and the rolling out a collective investment scheme (CIS) fund market.

These products will boost market efficiency and diversify the means of mobilising excess funds in the economy with greater efficiency.

Meanwhile, SERC is also looking into the feasibility of launching margin trading as well as putting in place other relevant regulations to promote more efficient and effective market development in the age of digitisation and globalisation.

Reference: Securities Market Statistic and Securities Trading Statistical Bulletin in Quarters 1, 2, 3 and 4 was published by SERC.

Prepared by: Securities and Exchange Regulator of Cambodia Research, Training, Securities Market Development and International Relations Department
E-mail: [email protected]
Phone: 023 885611