Myanmar hopes to become the latest Asian country to establish its own stock exchange, but early signs of a delay to the project have put Singapore in pole position to become the hub for Burmese listings.
The Myanmar stock exchange is not due to launch until 2015, but investment has been pouring in since the country returned to the international fold last year.
Building sites are as common as potholes and stray dogs in the city limits of Yangon these days, and the names of Hong Kong and Chinese developers are proudly displayed at the top of some recently completed towers. Asian companies like the Park Royal hotel and Parkson department store chains are doing booming business, Tiger Beer vies with Coca-Cola for table space, and new developments are being announced by the week, notably in tourism and infrastructure.
Last week a Thailand-based joint venture announced its plans to list Myanmar-focused Toyo Thai Power Holdings in Singapore, following in the footsteps of property developer Yoma Strategic Holdings.
The SGX has been arguably more successful than Hong Kong in attracting listings from other Asian countries, helped by its geographical location. Whereas HKEx's fortunes rely almost entirely on Chinese stocks, Singapore's bourse is a rojak of nationalities.
This has occasionally come at a price. Mention "S-Chips", the name for Chinese stocks listed in Singapore, and investors will reel off countless governance scandals: from China Aviation Oil's attempts to cover up trading losses, to discrepancies in the accounts of China Sky Chemical Fibre.
The SGX needs to ensure that in making itself attractive to foreign issuers, it acknowledges the limits of enforcement against overseas-domiciled companies and the slim chances of a successful prosecution. That is important for investors, too, who may assume there is a greater sense of security from investing in Myanmar through a Singapore-listed entity.
Myanmar is Asia's last frontier, and every emerging market can expect a few bumps on the road to development.
Source: http://www.news.myanmaronlinecentre.com/2013/09/14/burmese-daze/
No comments:
Post a Comment