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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2006
MONGOLIAN STOCK EXCHANGE
The activities of the MSE are accelerating
and some progress has been made,
notably.
Rentson Sodkhuu
Chairman and CEO
The Mongolian Stock Exchange continues
operation while at the same time
implementing our missions and purposes in
order to contribute to the economic
development of Mongolia in this historical
period denoted with the transition from
securities trading with the privatization nature
to a classical securities market with the
important investment nature.
In 2005, the MSE focused on issues such as
to creating a favorable legal and economic
framework to develop the securities market as
a traditional model outside of the state
privatization policy; to improve dissemination
of information to public; conduct activities in
open and transparent ways; extend foreign
relations; improve the administrative
management and structure and capacity
building of human recourses;
As a result, the activities of the MSE are
accelerating and some progress has been
made, notably:
• Listing of the first company on the MSE and
issuing of shares in the traditional manner;
• Establishing the “Information center” with
the purpose of disseminating information to
listed companies, member brokers and dealer
companies and all participating professional
organizations;
• Publishing the “Capital market” monthly
magazine;
• Establishing the “Training Center” to
prepare skilled specialists and provide
citizens and participants in the capital market
with the market knowledge.
• Completing preparation works for the 15th
anniversary of the MSE. Organized three
academic conferences namely
“Improvements of Legal Environments”,
“Creating the Economic Suitable Condition for
Securities Market Development” and
“Importance of Media & Journalism in
Securities Market Development”.
The conferences produced recommendations
to public; and
• Organizing a 4 month monitoring event
named the “Shareholder” to protect the rights
of the shareholder.
HISTORY AND DEVELOPMENT
During the transitional period from a central
planned economy to a market economy in
Mongolia, many social and economic
changes were made, such as the
establishment of new relations, new entities,
new productions and services. Two of those
changes were the founding of the MSE on
18 January 1991 by government resolution
and the initiation of the privatization process.
According to the privatization policy adopted
by the government in 1992-1995, 96.1
million shares valued at tugrugs 8.2 billion
(US$ 7.0 million) of 475 state-owned entities
were traded by the MSE.
The Securities and Exchange Law was
passed in 1994 and the Corporate Law in
1995 resulting in the establishment of the
secondary market. 29 broker firms, operated
and financed by the MSE, were privatized.
New statutes of the MSE were adopted by
the government resolution of 1995. With the
start of secondary market activity, shares
of more than tugrugs 38 billion (US$ 32.5
million) were traded during 1996-2003. Since
the inception of government bond trading in
2000, and corporate bond trading in 2001,
to date government bonds valued at tugrugs
105.4 billion (US$ 90.2 million), and
corporate bonds valued at tugrugs 6.9
billion (US$ 6.0 million) have been traded.
The new Securities and Exchange Law,
adopted by Parliament in December 2002,
declared the MSE to be a business entity,
allowing it to carry out legal business
services.
According to the government resolution, the
MSE was reorganized as a profit-making,
state-owned shareholding company.
MISSION STATEMENT
Our mission is to contribute to the national
economy by creating the classical securities
market with the purpose of mediating the
accumulation of assets in the financial
market by providing lowest possible cost
with the long term.
FUTURE OUTLOOK
In 2006, the MSE will focus to achieve
following goals:
• developing the securities market legal
environment,
• creating an economic suitable condition
for securities market development and
promoting innovations to create new
investment capital resources through the
securities market trading,
• improving dissemination of information on
securities market to public and activities for
trainings and advertisements,
• providing an environment for member
organizations to operate fair and transparent
way; and
• implementing works to solve challenges,
affecting on the development of securities
market.
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