Mongolia Financial Sector Assessment : Capital Markets
This technical note summarizes findings and recommendations on measures for the strengthening of the capital markets in Mongolia. The authorities have taken bold steps in the last two years to modernize the Mongolian Stock Exchange (MSE) and put in...
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| Format: | Report |
| Language: | English en_US |
| Published: |
Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/710651468060894015/Mongolia-Capital-market-technical-note http://hdl.handle.net/10986/27094 |
| Summary: | This technical note summarizes findings
and recommendations on measures for the strengthening of the
capital markets in Mongolia. The authorities have taken bold
steps in the last two years to modernize the Mongolian Stock
Exchange (MSE) and put in place modern legal, regulatory and
market infrastructure for the capital market. Improving the
institutional, regulatory and supervisory framework is a key
priority, and the enactment of a new securities market law
should lay a sound foundation for the regulation and
supervision of the securities markets. However, its current
draft has several gaps that should be addressed.
Nonetheless, development of the domestic securities market
in Mongolia should take into account the inherent problems
for small markets, because a central feature of the
securities market is economies of scale. Currently, the
local capital market is not representative of the full
universe of Mongolian enterprises that are operating in the
country at present. As a result, it may be difficult to
attract foreign investors interest if the country's
most attractive firms are not listed domestically. One of
the most important elements for a strong domestic capital
market is a diversified institutional investor base, and the
regulatory agencies involved should pursue a concerted
strategy toward developing the investor base. Mongolia needs
to provide an enabling environment to attract a diverse
range of institutional investors participation, including
investors from abroad. |
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