Securities regulators from Cambodia and Laos are joining hands to boost the growth of their capital market as they are relatively small compared to their peers in the region.
Securities and Exchange Regulator of Cambodia (SERC) director-general Sou Socheat and Lao Securities Commission Office (LSCO) secretary-general Fongchinada Sengsourivong signed a Memorandum of Understanding (MoU) on the cooperation of the securities market on August 10.
Fongchinada said that LSCO is a key regulator which has been playing an important role for the development of the securities market in Laos.
The institution has been conducting many securities activities, issuing policies, law and regulations that comply with the international best practices.
She said the cooperation with SERC is a new move for the development of the market between the two countries in providing information and other technical assistance with the aim of ensuring mutual progress of the market.
“We do believe that the MoU would play an important role in supporting the necessary information and strengthening the cooperation on the securities market between Cambodia and Laos,” she said.
Meanwhile, SERC’s Socheat said the partnership would strengthen the cooperation in capacity building and information exchange in order to build more trust and solidarity, and ensure progress in the long run for both parties.
“It is another milestone and a great journey for both the regulators to work hand-in-hand to develop the securities market as an in-depth partnership. SERC always cooperates with regional frameworks including the Mekong-capital market and ASEAN-capital market forum,” he said.
According to Socheat, over the past decade, the securities market in Cambodia has grown significantly in which the securities products have developed gradually and continuously.
Since the launch of the market, a total of 20 companies are listed on Cambodia Securities Exchange (CSX), where 11 of them have issued shares. Of that, nine companies are listed on the Main Board and two are listed on the Growth Board. Another nine companies have issued corporate bonds via the stock market.
“Among the companies, Golden Tree Co Ltd issued the first Green Bond in line with the ASEAN Green Bond Standard. Besides the green bond, we have three more companies that are in the process of issuing sustainable and green bonds.
“There are at least one or two companies which are expected to list on CSX by the end of this year. At the same time, we have also granted licence and approval to more than 100 companies operating in the securities market,” he said.