Mongolia’s capital market capitalization reaches highest level www.montsame.mn
Despite significant challenges facing Mongolia's economic and financial markets amid the COVID-19 pandemic over the past two years, market capitalization, trading volumes, and index have all recently reached historically high levels.
Market capitalization reached MNT 4.0 trillion last month, and the capitalization of one of the largest national companies reached MNT 1.0 trillion. Moreover, on September 8, 2021, the market capitalization of the Mongolian Stock Exchange JSC reached its highest ever level - in the 30-year history of the capital market in the country - of MNT 5.0 trillion.
As a result of the support being provided to the capital market from the Mongolian Parliament and the Government, the Financial Regulatory Commission has accomplished the following in cooperation with professional market organizations, securities issuers and investors:
developing the capital market,
increasing the range of products and services, and
converting securities between domestic and foreign exchanges.
Today, market capitalization has reached a record high as a result of major policy measures, used to build a system of professional investors. It is worth noting that this increase was also due to factors such as the recovery of public and corporate confidence in the capital market, increased participation in trading, and an increase in the total value of listed companies.
Interest rates will be gradually reduced in the future under the Strategy to Reduce Loan Interest Rates, and the recent amendments to the Banking Law of Mongolia. Next year, systemically important banks will become listed, and their shares will be traded to the public through trading organizations. This will contribute to increasing market capitalization, improving the quality and availability of products and services, and improving the comprehensive long-term situation of the financing system.
Published Date:2021-09-09