CAPITAL MARKET IN MONGOLIA 12_Mongolia.pdfCapital market overview (MSE) 303 300 301 303 307 0 100...
Transcript of CAPITAL MARKET IN MONGOLIA 12_Mongolia.pdfCapital market overview (MSE) 303 300 301 303 307 0 100...
CAPITAL MARKET IN
MONGOLIA
Contents
The current state of capital market development in
Mongolia
Regulatory frameworks relating to domestic capital
markets;
Major relevant policies that have been announced;
National development plans on capital markets
Key lessons learned on capital market development.
Authorities of the Financial market
Financial Regulatory Commission
- Insurance market
- Securities market
Microfinance market
Non-bank financial institutions
Savings and credit cooperatives
The Bank of Mongolia
Money market /Banks/
Structure of the Financial sector /billions MNT/
Capital market
Insurance
NBFI
SCC
Financial market
Percentage of GDP 16%2018
4.61%= 𝑨𝒄𝒕𝒊𝒗𝒆
𝑮𝑫𝑷
0.72%= 𝑨𝒄𝒕𝒊𝒗𝒆
𝑮𝑫𝑷
1.12%= 𝑨𝒄𝒕𝒊𝒗𝒆
𝑮𝑫𝑷
9.1%= 𝑴𝒂𝒓𝒌𝒆𝒕 𝑪𝒂𝒑𝒊𝒕𝒂𝒍𝒊𝒛𝒂𝒕𝒊𝒐𝒏
𝑮𝑫𝑷
Санхүүгийн зохицуулах хорооны товч танилцуулга
Securities market
514
Insurance market
140NBFIs
538
SCCs
275
Branches and
representatives
930
As of 2nd quarter of 2019, FRC regulates 2,397 professional entities including:
❖ securities firms, brokers and dealers, underwriters, investment funds, joint
stock companies;
❖ insurance companies and intermediaries;
❖ non-bank financial institutions;
❖ savings and credit cooperatives;
Financial institutions under FRC regulation
Capital market overview (MSE)
303 300 301 303 307
0
100
200
300
400
500
2015.II 2016.II 2017.II 2018.II 2019.II
Market capitalization /billion MNT/ Number of securities companies,total assets /billion MNT/
TOP 20 IndexNumber of listed companies
4.8%
4.1%
1408.5 1423.1 1497.7
2484.9
2604.8
0.4%
0.9% 0.8%
2.0%
3.2%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
0
1,000
2,000
3,000
2015.II 2016.II 2017.II 2018.II 2019.II
15,023.81 12,274.16 12,660.44
19,961.46 20,785.21
2015.II 2016.II 2017.II 2018.II 2019.II
63 6261
54 5267.675.2
95.3 93.2 90.2
0
20
40
60
80
100
120
0
20
40
60
80
100
2015.II 2016.II 2017.II 2018.II 2019.II
Capital market overview (MSE)TOTAL VALUE OF SECURITIES
TRADED
SHARES TRADED VALUE
GOVERNMENT BOND TRADED VALUE
BILLION MNT
BILLION MNT
BILLION MNT
CORPORATE BOND TRANSACTION VALUE
BILLION MNTSHARES TRADED COMPOSITION
FOREIGN INDIVIDUAL
FOREIGN ENTITY
LOCAL ENTITY
LOCAL INDIVIDUAL
Securities traded at MSE
49.8
82.5
2010.II 2011.II 2012.II 2013.II 2014.II 2015.II 2016.II 2017.II 2018.II 2019.II
Stock /Billion MNT/
27.67.9
2010.II 2011.II 2012.II 2013.II 2014.II 2015.II 2016.II 2017.II 2018.II 2019.II
Government bond /Billion MNT/
Government securities traded in MSE and BOM (billion MNT)
240
3008.7
1979.31854.53 1824.8
2702.26
0 36.12
510.34280.45
630.2
0
500
1000
1500
2000
2500
3000
3500
2012 2013 2014 2015 2016 2017
The Bank of Mongolia MSE
Issued amount of Mortgage backed security, billion MNT
The current state of capital market development in
Mongolia
Regulatory frameworks relating to domestic capital
markets;
Major relevant policies that have been announced,
national development plans on capital markets
Key lessons learned on capital market development.
Regulatory frameworks relating to domestic
capital markets
Law on investment
Law on investment fund
Law on securities market
Regulations on Issuing and Trading of Government securities
(BOM and MOF)
Draft Laws To Be Revised
Law on the Legal Status of the Financial Regulatory Commission
Law on Non-Bank Financial Institutions
Law on Savings and Credit Cooperative
Draft Laws To Be Amended
Law on Insurance
Law on Insurance Intermediaries
Driver's Insurance Law
Law on Investment Fund
Law on Agricultural Products and Commodity Exchange
Comprehensive list of amendments in current laws in force and new
draft laws to be approved was sent and it was referred in the “Main
Direction of Improvement in Legislation of Mongolia by 2020”
FRC Activities: Legal Reforms of Capital Market
Law on Securities Market
Major relevant policies that have been announced,
national development plans on capital markets
The National Program to develop Mongolia’s financial market until 2025
Sustainable development plan 2030
Key lessons learned on capital market
development Mongolian capital market is underdeveloped and it does not play a
leading role in long term financing
Corporate bond financing is almost non existing
There is a need to implement policy measures in order to develop a secondary market
Need to pay attention in developing the corporate governance of joint stock companies
Need to introduce securities market settlement systems in line with international standards