[CHANNEL NEWS ASIA]
PHNOM PENH: Cambodia
launched its long-awaited national stock exchange on Monday, aimed at
boosting economic growth -- but trading is not set to start for months
because of a string of delays.
During the opening ceremony for
the exchange, Economy and Finance Minister Keat Chhon said the event was
"an important historical day for the Cambodian financial sector" and a
new source of "national pride".
"It clearly reflects that
Cambodia has been moving forward to another stage of financial sector
development," he said, describing the Cambodia Stock Exchange (CSX) as
"a new instrument" for saving and investment.
Full operation will start before the end of the year, Keat Chhon said.
Cambodia
signed an agreement to set up the stock market -- a joint venture
between the government and South Korea's stock exchange -- in 2008 and
planned to open it in 2009.
However, the launch date was pushed back twice due to the global downturn and regulatory hurdles.
The Korea Exchange, which has a 45 per cent stake in the CSX, has a similar interest in the recently-opened bourse of Laos.
Keat Chhon said three state-owned enterprises had been instructed by the government to work on listing their stocks for trading.
Last
November, 15 securities firms were granted licences as underwriters,
brokers, investment advisers and dealers to operate on the bourse.
Stock
quotations for trading must be in local currency -- the riel -- only,
the Securities and Exchange Commission of Cambodia (SECC) said in March.
But
for the first three years, both buyers and sellers can arrange to
settle payments in US dollars at their agreement, according to
officials.
Cambodia has a long-term goal to reduce reliance on
the greenback, which according to the Asian Development Bank makes up
more than 90 per cent of all currency in circulation in the country.
While
still among one of the world's poorest countries, Cambodia has emerged
from decades of conflict as one of the region's rising economies.
Cambodia
remains a largely cash-only economy and a high degree of mistrust means
many people hoard their money at home instead of using banks.
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