Monday, 15 August 2011

Opportunities and Challenges for Cambodia Stock Exchange (CSX)

Canadia Tower in Phnom Penh

In general, the establishment of a stock market is good for both short-term and long-term economic growth for an economy. Following this context, Cambodia is in the modernization process of its financial sector with the establishment of the Cambodia Stock Exchange (CSX) in July 2011. However, Cambodia faces systematic challenge in opening the new stock market.

Behind this challenge, there are fears of systematic risk and speculative bubble, which the Cambodian Government should take into account in views that most advanced economies, particularly Japan, have experienced these problems. Given the two issues, the Government should maintain the optimism of long-term economic growth through sound macroeconomic policy and political stability. In line with this, the National Bank of Cambodia, as the Central Bank, should promote strict financial supervision and regulation and heavy capital control, especially at the initial stage after the establishment of the new bourse.

Last but the most importance, creditability of the Central Bank, trust, and public confidence in the banking and financial sector should be enhanced and maintained by the Government and the Central Bank since it serves as the backbone of the macroeconomy and financial stability.

Other articles on Cambodia: 

    (5 March 2014)

    (17 October 2011)

    (03 October 2011)

    (12 September 2011)

6. Review of Cambodia's Economy and Finance (up to 2011)
    (31 August 2011)

     (22 August 2011)

    (17 August 2011)

    (17 August 2011)

    (16 August 2011)

      (15 August 2011)

      (15 August 2011)

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