Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia, Thailand ink MoU to connect capital markets

Cambodia, Thailand ink MoU to connect capital markets

Content image - Phnom Penh Post
The Securities and Exchange Commission of Cambodia (SECC) director-general Sou Socheat. Heng Chivoan

Cambodia, Thailand ink MoU to connect capital markets

The Securities and Exchange Commission of Cambodia (SECC) and Thailand’s Securities and Exchange Commission (SEC Thailand) on Tuesday signed a memorandum of understanding (MoU) to cooperate and exchange information on cross-border equity offerings and the issuing of depository receipts with SEC Thailand.

The aim of the MoU is to push for the successful implementation of cross-border offerings of securities that link both countries’ capital markets.

The deal is the result of a fruitful discussion between the two agencies early last month and is being seen as an important milestone to reflect strong bilateral ties as well as to further strengthen a previous MoU signed in 2014.

The latest MoU covers the establishment and setting up the functions of a task force to work on the process of implementing cross-border equity offerings and the issuing of debt receipts. It also covers guidelines for those who wish to offer securities both in Cambodia and Thailand.

SECC director-general Sou Socheat said: “The additional MoU signing marks a long friendship, market development and cooperation between SECC and SEC Thailand.

“This MoU will provide alternative ways for companies both in Cambodia and Thailand to have access to capital, help expand the issuers’ businesses, increase their liquidity derived from trading in more than one exchange and access to larger pool of potential investors,” said Socheat.

“In addition, we are sure this MoU’s implementation will lead to a good model for cooperation in the region and we are optimistic that capital markets in the region will grow together,” he said.

SEC Thailand secretary-general Ruenvadee Suwanmongkol said: “Cambodia and Thailand are well connected in economic, social and cultural terms.

“Both SEC Thailand and the SECC also have been enjoying a friendly, cooperative relationship both at bilateral and multilateral levels over the past several years.

“The MoU signed today [on Tuesday] marks a significant milestone in enhancing capital-market cooperation between the two regulators to make a strong contribution to the successful implementation of cross-border equity offering and debt receipts with the aim of allowing issuers from both countries to list or make an offer of their equity securities outside the issuer’s home jurisdiction.

“With this strong collaboration, it is expected that a corporation from Cambodia will become the first foreign company listed on the Stock Exchange of Thailand, after the SEC [Thailand] regulation on cross-border equity offering became effective in 2015.

Debt receipt is another financial instrument that has been received with great interest by businesses in both countries. Thus, we strongly believe this MoU will create greater business opportunities as well as sustainable growth and prosperity of the region,” she said.

THE NATION (THAILAND)

MOST VIEWED

  • NY sisters inspired by Khmer heritage

    Growing up in Brooklyn, New York, Cambodian-American sisters Edo and Eyen Chorm have always felt a deep affinity for their Cambodian heritage and roots. When the pair launched their own EdoEyen namesake jewellery brand in June, 2020, they leaned heavily into designs inspired by ancient Khmer

  • Schools drawn into Manet degree row

    Prime Minister Hun Sen stepped into the Hun Manet-Sam Rainsy war of words over the validity of Manet’s degree from the US Military Academy at West Point, set off by Rainsy’s claims that Manet had received a “second-class degree” or “honorary degree”. Hun

  • Cambodia records first Omicron community case

    The Ministry of Health on January 9 reported 30 new Covid-19 cases, 29 of which were imported and all were confirmed to be the Omicron variant. The ministry also reported 11 recoveries and no new deaths. Earlier on January 9, the ministry also announced that it had detected the Kingdom's

  • The effects of the USD interest rate hike on Cambodian economy

    Experts weigh in on the effect of a potential interest rate expansion by the US Federal Reserve on a highly dollarised Cambodia Anticipation of the US Federal Reserve’s interest rate hike in March is putting developing economies on edge, a recent blog post by

  • PM eyes Myanmar peace troika

    Prime Minister Hun Sen has suggested that ASEAN member states establish a tripartite committee or diplomatic troika consisting of representatives from Cambodia, Brunei and Indonesia that would be tasked with mediating a ceasefire in Myanmar. The premier also requested that Nippon Foundation chairman Yohei Sasakawa

  • Kampot tourism quay ‘90% done’

    Construction on Kampot International Tourism Port – a 4ha quay in Teuk Chhou district about 6km west of Kampot town – has fallen off track, reaching 90 per cent completion, according to a senior Ministry of Tourism official last week. The project is now planned to be finished