By:
• Ou Sokmean

• September 8, 2024 , 2:16 PM

PHNOM PENH —Cambodia’s economic growth can only achieve its full potential if the securities exchange sector expands, said Hong Sok Hour, Royal Government delegate and chief executive officer of the Cambodia Securities Exchange.

With the expansion of the securities sector, business owners will have greater opportunities to secure capital from investors on the stock market, facilitating business growth and the establishment of new businesses, he said.

“As our stock market expands, we see rapid growth in major companies,” Sok Hour said. “For instance, global giants such as Alibaba, Google and Facebook have achieved significant growth by entering the securities exchange market.”

Sok Hour was speaking during the “Listed Companies Forum,” which was held in early September by the Cambodia Securities Exchange and ACLEDA Bank Plc. on the theme of “Progress of ACLEDA Bank.” 

“Over the past 12 years, Cambodia has developed its securities sector to bolster the national economy,” he said. “Despite slower growth compared to neighbouring countries like Vietnam and Thailand, recent years have seen significant progress.”

According to Sok Hour, investor interest in the country has increased since the late 2018, with daily trading volumes going from $10,000 in 2017 to more than $20,000 in 2018.

“Entering the securities sector will stimulate economic growth by increasing economic activities, producing more goods, and generating more job opportunities,” he said. “Essentially, it will help sustain the economy.”

Currently, the Cambodia Securities Exchange (CSX) has 18 companies listed with nine of them shareholders and nine bond issuers. These companies have raised $317 million on the stock market.

Among the nine companies listed with shareholders is ACLEDA Bank, which issued its initial public offering (IPO) and debuted on the CSX on May 25, 2020. The bank’s IPO led to 2,496 investors holding 4,344,865 ACLEDA Bank’s shares.

In Channy, president and group managing director of ACLEDA Bank, said during the forum that, since ACLEDA Bank has been listed on the CSX and up to the end of June 2024, the exchange has seen an increase of 51,771 investors and a trading volume of 168,807,829 shares. The total number of listed shares is 3,128,914,784, with a market capitalization of 11.21 trillion riel (around $2.7 billion).  

“ACLEDA Bank is dedicated to upholding high standards of corporate governance and transparency, ensuring equal access to banking information and benefits for all stakeholders,” Channy said. “Those include details on strategic plans, financial reports, dividends, and major initiatives.”

According to Channy, the bank prioritises digital technology innovations to improve its banking services' quality, convenience, and security, thereby enhancing both customer experience and operational efficiency. 

Originally written in Khmer for ThmeyThmey, this story was translated by Rin Ousa for Cambodianess.