Tuesday, 17 February 2009

PM: Crisis may hinder Cambodian stock market plan

www.chinaview.cn
2009-02-17

PHNOM PENH, Feb. 17 (Xinhua) -- The world financial crisis may delay the establishment of a Cambodian stock market despite a plan to have it up and running by this year end, national media Tuesday quoted Prime Minister Hun Sen as saying.

A delay would help Cambodia avoid the "anarchy" and tumbling stock prices like other stock markets around the world, Hun Sen said on Monday at an economic conference in Siem Reap province.

"If the world stock markets are still in anarchy, should we follow the plan in 2009 or not?" English-language daily newspaper the Cambodia Daily quoted the premier as saying.

"If the stock market is born to die, we should not establish it at this time," he added.

According to local reports, the Korea Exchange (KRX) planned to sign an official agreement with the Cambodian government on Thursday to help launch the kingdom's proposed stock exchange market in December.

KRX manager Inpyo Lee expected institutional investors and foreigners to be the main source of liquidity in the early stages of the market, and about 30 companies would be listed by the time the exchange was operating "normally."

Meanwhile, experts have expressed their doubt and lack of confidence, warning that the timing of the initiative could create problems as Cambodia faces reduced economic growth, increased unemployment and the threat of rising non-performing loans.

"I think that currently, the environment is not good enough to proceed with the stock market in Cambodia," Kang Chandararot, economist and president of the Cambodia Institute for Development Study, told the Phnom Penh Post, adding that Cambodia would risk losing investors' confidence, if it rushed prematurely into establishing an exchange.

Editor: Wang Hongjiang

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