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Yangon Stock Exchange Moves Ahead

Japan Exchange Group, Daiwa Institute of Research and Myanma Economic Bank have signed a joint venture agreement to set up the Yangon stock exchange.

The joint venture will be named Yangon Stock Exchange Joint-Venture Company Limited, and has K32 billion ($32 million) in capital, according to Japan Exchange Group.

Daiwa Institute of Research Ltd will hold 30.25 percent of the joint venture, and Japan Exchange Group 18.75 percent.

Myanma Economic Bank, owned by the Myanmar Ministry of Finance, will hold a controlling share of 51 percent.

“The agreement is the outcome of long and conscientious negotiations between the competent authorities of Japan and Myanmar to set up and operate the first stock exchange in Myanmar. The parties have been engaged in discussions since May 29, 2012, when the Memorandum of Understanding regarding the establishment of a stock exchange and the cooperation for support in the development of the capital market in Myanmar was concluded,” the companies said in a joint statement.

The plan is to launch the exchange sometime in 2015. However, there is some question about whether the exchange can open smoothly.

“Cambodia, Laos and Vietnam have had stock markets for two years, but they have been largely unsuccessful. Myanmar is just starting from nothing right now. The public needs to participate in the stock market. It is too early to judge how this will play out in the long term,” said U Pe Myint, director general of CB Bank.

After the establishment of the stock exchange, the Securities and Exchange Commission will issue underwriter, dealer, broker and consultant licences.

The exchange will be located at the former building of Union Bank on Sule Pagoda Road.

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