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Chinese eye asset management

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Kao Thach (second left), the CEO of state-owned Rural Development Bank, meets with a group of Chinese investors on Monday. rural development bank via fecebook

Chinese eye asset management

A group of Chinese investors has expressed interest in investing in Cambodia’s asset management sector and tapping into the vast opportunities for businesses and investments brought about by the Kingdom’s current economic development.

Kao Thach, the CEO of state-owned Rural Development Bank (RDB), met with a group of Chinese investors on Monday.

Speaking to The Post on Tuesday, he said: “They came to study the trust market and businesses relevant to asset management because they are aware that there are many rich people in Cambodia who do not know what to invest in.”

They showed a special interest in the Kingdom’s agricultural sector – especially rice processing, he said.

“They saw that financing in the agricultural sector continues to face a shortage of funds, so they want to look at this investment opportunity. I would also ask them to invest in agriculture in Cambodia,” he said.

Securities and Exchange Commission of Cambodia (SECC) director-general Sou Socheat said the SECC is issuing more fund management licences in a move to boost investment in the Kingdom.

“More fund management companies means that we will have more capital, which is a source for development,” he said.

Speaking during Hong Kong-owned Gold Whale Co Ltd’s fund management licence handover and official inauguration ceremony in August, Socheat said a fund management company refers to a business which enters into so-called “joint ventures” with public participation to fund projects and share their benefits.

Jones Kam-Fung Chan, the CEO and director of Gold Whale, which was the fourth company to receive the licence from the SECC, said the firm’s fund management business will focus on investment and generate profit for its investors.

“We will focus on investments that benefit project participants through financial restructuring, investment management, portfolio management, product development and risk management,” said Chan.

In April, CEO Master Club Investment Plc became the first company to obtain a fund management licence from the SECC. It officially launched in September.

Speaking at the launch, the firm’s CEO Om Seng Bora said Cambodia’s continuing economic growth has created a myriad of investment opportunities for locals to consider investing in sectors that are largely dominated by foreigners.

He said his company plans to facilitate access to new sources of capital for small and medium-sized enterprises and entrepreneurs.

Socheat said four companies have received licences from the SECC as fund management companies while two other applications are pending a decision.

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