Canadia to incentivise CSX-listed companies

Content image - Phnom Penh Post
A monitor displays the Cambodian stock market index next to the reception of the CSX in Daun Penh district’s Wat Phnom commune in the capital. Heng Chivoan

Canada Group has launched an incentive scheme for Cambodia Stock Exchange- (CSX-) listed companies, which it said will attract more firms to the stock exchange.

On March 14, the group signed a cooperation agreement with the Securities and Exchange Commission of Cambodia (SECC) to provide the incentive.

 

SECC director-general Sou Socheat said this is a sign of progress for the Kingdom’s securities sector.

He said the government provides tax incentives for listed companies, adding that under this collaboration, listed firms and their subsidiaries will receive special added benefits.

“Collaboration with Canadia Bank Plc will further encourage companies to list on the CSX,” he said, adding that support from the banking sector is very important for the securities sector, due to their inseparability.

“When the securities sector performs well, banks will accordingly do better,” he said.

Under the agreement, Canadia Bank will provide listed companies and their subsidiaries with several benefits, including low-interest rates for both them and their employees.

Canadia Bank CEO Raymond Sia Say Guan said as a bank with a large number of partnerships with major companies and small- and medium-sized businesses, offering these special packages will contribute to the development and prosperity of Cambodia’s securities sector.

 

“We are confident that this special financing package will further encourage companies to consider registering on the CSX,” he said.

CSX CEO Hong Sok Hour said it showed the mutual complementation between the securities and the banking sectors. Together they contribute to the development of the economy through more effective cash flow management.

“This is a good start and shows that Cambodia’s stock market will grow steadily,” he said.

Socheat said SECC also seeks similar collaboration with the Bank for Investment and Development of Cambodia Plc.