Cambodian Stock Exchange sees challenges, opportunities

I visited the Cambodian Stock Exchange (CSX) last September in the heart of Phnom Penh. It had officially “opened” a few months prior but no companies were listed yet. The trading room was filled with new desks and computer monitors, waiting for someone to power them on. Fast-forward seven months and the stock exchange is now starting to breathe signs of life— there is now one company trading on the exchange. On April 18, the Cambodian Stock Exchange started trading with the initial public offering (IPO) of the state utility company, “Phnom Penh Water Supply Authority.” As a frontier market, Cambodia is still a work in progress. The government is trying to woo global investors by throwing open its doors and virtually saying, “We’ll make it easy for you.” There are no capital controls. No requirements for joint ventures. International companies can own 100 percent of their local business in Cambodia. The only major restriction is on foreign ownership of land. With a young labor force that commands cheaper wages than China, Cambodia has been looking attractive to foreign companies. Despite these incentives, there are many challenges for the new stock exchange…

http://www.chinapost.com.tw/business/global-markets/2012/05/07/340280/Cambodian-Stock.htm