In recent years the Mongolian Stock Exchange (MSE) has experienced solid growth, fuelled by capital inflows and foreign investment, in line with emerging economy bourses around the world. At the same time the market is constrained a by shortage of information and low liquidity. Like other frontier economies, Mongolia is in the midst of a long-term programme to modernise and scale up its securities platforms until they are on par with global standards. A recently established partnership with the…
From The Report: Mongolia 2012
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Mongolia’s bourse is the focus of much investor interest, given its massive resource endowment and relative obscurity. In some ways, Mongolian stocks are proxy for Chinese securities, which are unavailable to foreigners; Chinese growth is directly linked to increased demand for Mongolian coal and other minerals. The barriers to investment in the Mongolian Stock Exchange are typical of a small emerging market: low liquidity and primitive data and information systems. Upgrading the market’s infrastructure is the goal of a new partnership with the London Stock Exchange that began in 2011.
This chapter features interviews with Xavier Rolet, CEO, London Stock Exchange Group (LSEG); B. Bold, Chairman, Mongolia Stock Exchange (MSE); and D. Achit-Erdene, President and CEO, MICC.