Capital Market Overview
Securities and Exchange Commission of Cambodia
KEP SamphySecurities Market Supervision Department
1*Any views express in this presentation are those of the author, and are not the official view of the SECC
Content
I- Overview of Cambodian Economy
II-Banking Sector
III-Capital Market
IV-Challenges
2
Overview of Cambodian Economy
3
Real GDP Growth
Source: Public ADB report: Improving Macroeconomic and Financial Resilience Cambodia Economic Update April 2016 4
Country at a glance
Sources: IMF Country Report No. 15/307, release November 2015 5
Banking Sector
6
Banking Sector: Deposit and lending rates
Source: Public ADB report: Improving Macroeconomic and Financial Resilience Cambodia Economic Update April 2016 7
The Situation of Deposit and Credit of Private Sectors
Source: Public ADB report: Improving Macroeconomic and Financial Resilience Cambodia Economic Update April 2016 8
Performance indicators of Cambodia’s Banks
Source: Public ADB report: Improving Macroeconomic and Financial Resilience Cambodia Economic Update April 2016
9
The Comparison of Deposit and Loan Interest Rate
Source: Public ADB report: Improving Macroeconomic and Financial Resilience Cambodia Economic Update April 2016
10
Capital Market In Cambodia
11
Development Process
Equities
Corporate Bond
CommoditiesDerivatives
2016
2019
2022
Collective Investment Scheme
Launching12
Development Process (Cont’)
13
Securities Market Infrastructure
2001 • Vision and Financial Sector Development Plan for 2001-2010• Vision and Financial Sector Development Plan for 2001-2010
2006• Financial Sector Development Strategy for 2006-2015: updated FSDP 2001-2010 (Currently
2016, FSDS 2011-2020 and updating to FSDS 2016-2020 )• Financial Sector Development Strategy for 2006-2015: updated FSDP 2001-2010 (Currently
2016, FSDS 2011-2020 and updating to FSDS 2016-2020 )
2007• January 10: Law on Government Securities• October 19: Law on the Issuance and Trading of Non-Government Securities• January 10: Law on Government Securities• October 19: Law on the Issuance and Trading of Non-Government Securities
2008• July 23: Sub-decree on the Conduct and Organization of the Securities and Exchange
Commission of Cambodia• July 23: Sub-decree on the Conduct and Organization of the Securities and Exchange
Commission of Cambodia
2009• April 08: Sub-decree on Implementation of Law on Issuance and Trading of Non-Government
Securities• April 08: Sub-decree on Implementation of Law on Issuance and Trading of Non-Government
Securities
• And subsequently, other Prakas as shown at www.secc.gov.kh• And subsequently, other Prakas as shown at www.secc.gov.kh
14
Securities Market of CambodiaDate Events
January 21, 2008 MOU on “The establishment of a Cambodia Securities Exchange in the Kingdom of Cambodia” was signed by MEF and KRX.
February 28, 2011 CSX received approval from SECC for: The Market Operator, Clearing and Settlement Facility and Depository Operator.
July 11, 2011 Inauguration of the Cambodia Securities Exchange
April 18, 2012 “Launching Ceremony of the Securities Trading at Cambodia Securities Exchange”.
KRX 45%
MEF 55%
CSX ownership structure CSX was granted approval by SECC as:
An operator of the securities market,
An operator of a clearing and settlementfacility, and
An operator of a securities depository. 15
Securities Market Operation
Type of Market Order-Driven Trading Method Electronic Trading System Method of Pricing Single-Price and Multiple-Price
Auction Type of Order Limit Order (only)Daily Price Change Limit ± 5% of the base price (90%-150% of
IPO price for initial listed securities) Minimum Trading Unit 1 share No margin trading 100% good faith deposit Settlement Date T +2 Trading before settlement Yes
16
Securities Market Operation (Cont’) Multiple Price Auction
Trading before settlement
17
Securities IntermediaryNo Name of Securities firm Type of Securities Business
1 Yuanta Securities (Cambodia) Plc. Underwriter
2 RHB OSK Indochina Securities Limited Underwriter
3 Cana Securities Ltd. Underwriter
4 Campu Securities Plc. Underwriter
5 SBI Royal Securities Plc. Underwriter
6 Phnom Penh Securities Plc. Underwriter
7 Golden Fortune (Cambodia) Securities Plc. Dealer
8 ACLEDA Securities Plc. Broker
9 CAB Securities Limited. Broker
10 Cambodia-Vietnam Securities Plc. Broker
11 Angkor Capital Advisors Co., Ltd. Investment Advisor
12 F.U.G.I GOLD Co., Ltd. Investment Advisor
18
Securities Market Participants
No Name of Company Type of Securities Market Participants
1 Acleda Bank Plc. Cash Settlement Agent (CSA)
2 Bank for Investment and Development of Cambodia Plc.
Cash Settlement Agent (CSA)
3 Canadia Bank Plc. Cash Settlement Agent (CSA)
4 Acleda Bank Plc. Securities Registrar, Transfer agent and Paying Agent (RTP)
5 Tricor Securities Services PLC. Securities Registrar, Transfer agent and Paying Agent (RTP)
19
Other Securities Market participants
1. Professional Accounting Firms2. Law firms3. Valuation Companies4. Printing Services5. Translation Service6. Others
20
Listed Companies
Symbol of Issues 1. PWSA 2. GTI 3. PPAP 4. PPSP
Listed Date 18-Apr-12 16-Jun-14 9-Dec-15 30-May-16
Type of Company Stated Own Private State Owned Private
Industry Water Utility Garment Textile Dry Port Special Economic Zone
IPO price 6,300 KHR(1.57$)
9,640 KHR(2.41$)
5,120 KHR(1.26$)
2,860 KHR(0.71$)
Number of Listed shares 86,973,162 40,000,000 20,684,365 57,875,000
Market Cap. (USD)(As of 6th Sep 2016) 98,714,539 36,000,000 27,406,784 39,355,000
21
0.00
200.00
400.00
600.00
800.00
1,000.00
1,200.00
-
2,000
4,000
6,000
8,000
10,000
12,00018
/04/
2012
27/0
7/20
122/
11/2
012
20/0
2/20
137/
6/20
136/
9/20
1320
/12/
2013
28/0
3/20
1410
/7/2
014
28/1
0/20
1411
/2/2
015
25/0
5/20
1525
/08/
2015
8/12
/201
514
/03/
2016
23/0
6/20
16
PWSA
Index
0
100
200
300
400
500
600
-
2,000
4,000
6,000
8,000
10,000
12,000
16/0
6/20
1429
/07/
2014
8/9/
2014
12/1
1/20
1424
/12/
2014
11/2
/201
525
/03/
2015
12/5
/201
529
/06/
2015
7/8/
2015
17/0
9/20
156/
11/2
015
24/1
2/20
155/
2/20
1621
/03/
2016
5/5/
2016
22/0
6/20
162/
8/20
16
GTI
Index
320
330
340
350
360
370
380
390
400
410
4,900
5,000
5,100
5,200
5,300
5,400
5,500
5,600
9/12
/201
524
/12/
2015
11/1
/201
625
/01/
2016
8/2/
2016
23/0
2/20
169/
3/20
1623
/03/
2016
6/4/
2016
25/0
4/20
1610
/5/2
016
30/0
5/20
1614
/06/
2016
28/0
6/20
1612
/7/2
016
26/0
7/20
169/
8/20
1623
/08/
2016
PPAP
Index
340
345
350
355
360
365
370
375
380
385
2,200
2,300
2,400
2,500
2,600
2,700
2,800
2,900
3,000
30/0
5/20
166/
6/20
1610
/6/2
016
16/0
6/20
1622
/06/
2016
28/0
6/20
164/
7/20
168/
7/20
1614
/07/
2016
20/0
7/20
1626
/07/
2016
1/8/
2016
5/8/
2016
11/8
/201
617
/08/
2016
23/0
8/20
1629
/08/
2016
2/9/
2016
PPSP
Index
Trading Activities of Listed Companies
22
0.00
200.00
400.00
600.00
800.00
1,000.00
1,200.00
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,00018
/04/
2012
31/0
5/20
129/
7/20
1213
/08/
2012
17/0
9/20
1226
/10/
2012
13/1
2/20
1224
/01/
2013
5/3/
2013
11/4
/201
329
/05/
2013
5/7/
2013
9/8/
2013
13/0
9/20
1328
/10/
2013
6/12
/201
317
/01/
2014
24/0
2/20
141/
4/20
1412
/5/2
014
24/0
6/20
1430
/07/
2014
3/9/
2014
27/1
0/20
148/
12/2
014
20/0
1/20
1525
/02/
2015
2/4/
2015
19/0
5/20
1525
/06/
2015
30/0
7/20
153/
9/20
159/
10/2
015
27/1
1/20
155/
1/20
1610
/2/2
016
18/0
3/20
1627
/04/
2016
9/6/
2016
14/0
7/20
1618
/08/
2016
PWSA
GTI
PPAP
PPSP
Index
Trading Activities of Listed Companies (Cont’)
23
The Needs of Market Liquidity
• Recently, SECC introduced other important market participants to stimuli the market liquidity such as: – Prakas on the implementation of the operating
rule of Liquidity Providers of Cambodia Securities Exchange adopted on 17th August 2016
– Prakas on Qualified Investors in securities sector adopted on 17th August 2016
24
Work in Progress
1. Support Regulations :
Develop others related regulations: sub-decree on bankruptcy, collective investmentscheme (CIS), corporate bond and othernecessary regulations.
25
Work in Progress (Cont’)
2. Market expansion : Performance of state owned enterprises and
sale of equity. Make SME listing easier. Promote the listing of significant financial
institutions.
26
Work in Progress (Cont’)
3. Market Segment Development : Corporate Bond: Establish and implement the legal
and regulatory framework and licensing for debt securities.
Collective Investment scheme (CIS): Develop and implement regulations for CISs operators and fund managers and License CIS operators.
Commodities Market: Develop physical commodities markets.
27
Work in Progress (Cont’)
4. Human Development: Skill development for SECC official and Professional
development to all Market Participants.
Investor & public education and protection.
28
Challenges
29
Challenges
• Government bond and interbank market;• Credit rating agency;• Trust company;• Strategies to attract bond issuers and investors
for the bond market development;• Financial Literacy and Financial Inclusion.
30