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

Thank you!

www.secc.gov.khinfo@secc.gov.kh

023 88 56 11

31