Robust securities market attracting more investors

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HE SOU SOCHEAT, The Director-General of SERC

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.