Tuesday, January 22, 2008

Cambodia signs deal to set up stock exchange in 2009

PHNOM PENH (Thomson Financial) - Cambodia Tuesday signed an agreement with representatives from South Korea's stock exchange operator to establish Cambodia's first stock market in 2009, officials said.

The memorandum of understanding makes formal the planned joint venture between Cambodia and the Korea Exchange (KRX), Asia's fourth-largest bourse operator.

The Cambodian government will own a 51 percent share in the new exchange, with KRX holding 49 percent, said Aun Pon Monirath, secretary of state with Cambodia's finance ministry.

'Both sides are now looking for a location and training people to work,' he said after a signing ceremony with KRX.

Last September parliament approved a law setting out the rules and regulations by which private and state enterprises can issue stocks and bonds.

Finance Minister Keat Chhon said at the time the law was up to international standards, although he acknowledged that many challenges remain -- particularly creating the infrastructure for the market and a computer system to manage trading. afp

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