By hannover-web.com In an exclusive interview with China News Service, Buth Kerady, the CEO of the Cambodia Securities Corporation, shared insights on the bright future of Cambodia’s capital market, which he believes is poised to enter a “golden decade.” Highlighting Cambodia as one of the fastest-growing economies in Southeast Asia, Kerady emphasized the government’s encouragement for local enterprises to go public and the welcoming stance toward foreign-owned companies seeking to issue stocks in the Cambodian market.
Reflecting on the tumultuous past, Kerady noted that Cambodia faced extreme challenges during the prolonged civil war in the 1970s and 1980s, leading to a near-collapse of its economic system. The implementation of peace agreements marked the beginning of national reconstruction, during which the Cambodian government steadily established its financial system, culminating in the adoption of the Securities Law in 1995, which laid the legal groundwork for capital market development. The establishment of the Cambodia Securities Exchange (CSX) in 2011 marked a significant step into a new era for the country’s capital markets.
In recent years, Cambodia has enjoyed robust economic growth, bolstered by various government incentives and reforms that have provided vital momentum for the capital market. Recently, Deputy Prime Minister Hong Manith reiterated the government’s commitment to its “Pentagon Strategy” aimed at diversifying industries and enhancing capital market growth, enabling more enterprises to thrive through public offerings and transforming Cambodia into an emerging financial hub in Southeast Asia.
Currently, Cambodia has 23 publicly traded companies, with 11 actively issuing stocks and raising over $400 million in the securities market. Kerady acknowledged that while Cambodia’s capital market may have started later than those of neighboring nations like Vietnam, Thailand, Indonesia, the Philippines, and Malaysia, the current global economic shifts and the accelerated transition of manufacturing to Cambodia are creating a favorable landscape for growth.
“We have noticed a strong correlation between the launch of capital markets and per capita GDP,” Kerady explained. “Most capital markets, such as those in Hong Kong, South Korea, and various Southeast Asian countries, show significant growth once the local per capita GDP reaches $2,000. Cambodia’s GDP is projected to hit this mark by 2025, leading us to anticipate substantial growth in the stock market in the coming year.”
Kerady expressed optimism regarding the development opportunities in Cambodia’s financial securities market and digital technology sectors. She pointed out that recent regulatory updates have encouraged corporate listings, and the influx of foreign investment coupled with strong economic growth positions Cambodia well. With the expectation that over the next five years, the number of listed companies could exceed 100, a surge of new listings seems imminent.
“We can foresee a wave of IPOs in the coming years, injecting new energy into the market and offering lucrative returns for investors,” Kerady said. “Interest from foreign investment institutions in Cambodia’s capital market is rising, and we are planning to introduce Pre-IPO opportunities to allow broader participation.”
Lastly, Kerady highlighted the significance of China’s capital market, especially Hong Kong, as a model for Cambodia’s development. As a key player in advancing Cambodia’s capital market, the Cambodia Securities Corporation is dedicated to fostering substantial international business collaborations. Through seamless connections with emerging markets, they aim to facilitate more companies in going public in Cambodia, driving the internationalization of the nation’s securities market and achieving mutual benefits.
