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    Mongolian Capital Market Overview

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    UrtaBaasanjargal
    The document discusses the Mongolian Stock Exchange and capital markets. It summarizes that the MSE has implemented a world-standard trading and settlement system through a strategic partnership with the London Stock Exchange Group. This has helped place Mongolia on FTSE's watch list for possible promotion to frontier market status. The MSE aims to transform into a world-class exchange and develop the Mongolian capital market by targeting the listing of large state assets and companies to increase the potential market capitalization to $45 billion from its current $1.5 billion.

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    Mongolian Capital Market Overview

    Uploaded by

    UrtaBaasanjargal
    184 views10 pages
    The document discusses the Mongolian Stock Exchange and capital markets. It summarizes that the MSE has implemented a world-standard trading and settlement system through a strategic partnership with the London Stock Exchange Group. This has helped place Mongolia on FTSE's watch list for possible promotion to frontier market status. The MSE aims to transform into a world-class exchange and develop the Mongolian capital market by targeting the listing of large state assets and companies to increase the potential market capitalization to $45 billion from its current $1.5 billion.

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    The document discusses the Mongolian Stock Exchange and capital markets. It summarizes that the MSE has implemented a world-standard trading and settlement system through a strategic partnership with the London Stock Exchange Group. This has helped place Mongolia on FTSE's watch list for possible promotion to frontier market status. The MSE aims to transform into a world-class exchange and develop the Mongolian capital market by targeting the listing of large state assets and companies to increase the potential market capitalization to $45 billion from its current $1.5 billion.

    Copyright:

    © All Rights Reserved
    184 views10 pages

    Mongolian Capital Market Overview

    Uploaded by

    UrtaBaasanjargal
    The document discusses the Mongolian Stock Exchange and capital markets. It summarizes that the MSE has implemented a world-standard trading and settlement system through a strategic partnership with the London Stock Exchange Group. This has helped place Mongolia on FTSE's watch list for possible promotion to frontier market status. The MSE aims to transform into a world-class exchange and develop the Mongolian capital market by targeting the listing of large state assets and companies to increase the potential market capitalization to $45 billion from its current $1.5 billion.

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    of 10

    MONGOLIAN CAPITAL MARKET

    OVERVIEW
    ANGAR.D CEO of Mongolian Stock exchange

    MONGOLIAN STOCK EXCHANGE l www.mse.mn


    MONGOLIAN STOCK EXCHANGE l www.mse.mn

    Mongolian Stock Exchange since the strategic partnership with the


    London Stock Exchange Group: Key achievements
    The Master Services
    Agreement was signed
    between the State
    Property
    Committee
    (SPC), the Mongolian
    Stock Exchange (MSE)
    and the London Stock
    Exchange Group for the
    purpose of implementing
    the MSE Development
    Plan;

    April, 7 2011

    Launched the integrated


    Millennium
    IT
    technology, consisting
    of
    Millennium
    Exchange, Millennium
    CSD,
    Millennium
    Surveillance, Millennium
    Trader
    programs,
    produced by LSEG
    subsidiary Millennium IT
    company.

    July, 2 2012

    Revised
    securities market
    law of Mongolia
    has
    been
    approved
    by
    Parliament.

    2013.5.24

    Operational rules
    and regulations
    have been
    amended according
    to the Revised
    securities market
    law of Mongolia

    2014.8

    Strategic
    partnership
    agreement
    has
    been
    extended
    for another 3
    years.

    2014.9.9

    The Principle Objective of the Plan is to transform the MSE to a world class Exchange Operator and Develop the
    Mongolian Capital Market as a whole;

    MONGOLIAN STOCK EXCHANGE l www.mse.mn


    MONGOLIAN STOCK EXCHANGE l www.mse.mn

    Mongolian stock exchange indicators


    Market
    Market
    capitalization
    capitalization
    Over the past 18 years, the value
    for this indicator has fluctuated
    between $1,578,573,000 in 2011
    and $24,800,000 in 2004.

    Market capitalization of listed


    companies (% of GDP) in Mongolia
    was 5.07 as of 2015.05.29. Its
    highest value over the past 18 years
    was 18.02 in 2011, while its lowest
    value was 1.24 in 2004.
    MSE
    MSE ALL
    ALL Index
    Index Performance
    Performance
    On June 10, 2015,
    MSE ALL index
    closed at 979.11
    points. Its high point
    was 1000.0, average:
    961.04 and low:
    921.67 in 2015

    2015.02.09, Starting point: 1,000.0

    MONGOLIAN STOCK EXCHANGE l www.mse.mn


    MONGOLIAN STOCK EXCHANGE l www.mse.mn

    2015.06.10, Close point: 979.11

    Mongolian stock exchange indicators

    Listed
    Listed Joint
    Joint
    Stock
    Stock
    Companies
    Companies
    /237
    /237 JSC/
    JSC/

    237
    JSC

    Securities companies with distant trading


    platform -31
    According to the renewed special license
    regulation of FRC, equity fund of
    Securities Companies should be not less
    than MNT500 million from July
    2014./Today equity fund is MNT50
    million/

    Member
    Member
    Securities
    Securities
    Companie
    Companie
    ss
    /62
    /62 SC/
    SC/

    There will be about 30 security


    companies expected to remain after
    joining and liquidating process .

    MONGOLIAN STOCK EXCHANGE l www.mse.mn


    MONGOLIAN STOCK EXCHANGE l www.mse.mn

    Delisting policy
    /2013 68JSC,
    2014- 25JSC,
    since 2015 1JSC was
    delisted/

    TOTAL LISTED COMPANY


    I Classification
    II Classification
    III Classification
    Delisted
    100% State owned
    Partially State owned
    Privet

    -237 JSC /100%/


    - 0 JSC
    - 89 JSC
    - 148 JSC
    - 156 JSC
    - 21 JSC
    - 15 JSC
    - 201 JSC

    MEMBER COMPANIES
    Broker, Underwriting
    Broker, Dealer
    Broker, Investor Advisory
    Broker, Dealer, Underwriting, Investor Advisory -

    62
    23
    60
    15
    9

    GOVERNMENT BONDS MARKET

    Primary market Government bonds trading has been organizing since November 2014.
    Since then, total of 2,809,453 Government bonds traded through 34 trading and
    transaction of MNT280.9 billion has been made.
    This year, the government bonds worth MNT243.3 billion traded in primary market.
    12 weeks Government bonds 91.0%
    28 weeks Government bonds 7.0%
    52 weeks Government bonds 2.0%- .

    MONGOLIAN STOCK EXCHANGE l www.mse.mn


    MONGOLIAN STOCK EXCHANGE l www.mse.mn

    Mongolian Stock Exchange and FTSE Group: A New Frontier Market

    The Mongolian capital market has been placed on FTSEs Watch List for possible
    promotion to Frontier market status.

    FTSE assumes a major position in global financial market and enjoys an


    unparalleled reputation for provision of indices and market data that many
    international investors an investment funds base on to make informed investment
    decisions.
    The implementation of a world standard
    trading and settlement system and market
    infrastructure and increased transparency in
    the market had a major influence in placing
    Mongolia on a Watch list for possible
    promotion to Frontier market status.

    MONGOLIAN STOCK EXCHANGE l www.mse.mn


    MONGOLIAN STOCK EXCHANGE l www.mse.mn

    Mongolian Capital Market the foreign investment friendly environment

    MONGOLIAN STOCK EXCHANGE l www.mse.mn


    MONGOLIAN STOCK EXCHANGE l www.mse.mn

    PROFILE OF TARGET LISTED COMPANIES


    Increasing the quality of the companies on the market is key to attracting new investors.
    There are seven categories of companies that we should target.

    Approx. market capitalisation


    $m

    State Privatisations
    Significant state assets listed on MSE and LSEG for
    capital raising
    Repatriations
    Mongolia companies listed on another exchange who
    decide to dual list on MSE
    (e.g South Gobi / Petro Matad)

    New Domestics
    Existing Mongolian
    companies which decide
    to list on the market

    Existing
    Current listed companies who meet (or
    close to) the new listing standards

    Foreign Listings
    Siberian mining companies too small to list
    on MICEX (or London) but wanting to raise
    further capital. Success could establish
    MSE as a regional exchange
    New Licences
    Small parcels of mining assets sold off by
    Government
    Delisted
    Existing listed companies who failed to meet the new listing
    standards

    Approx. timing

    MONGOLIAN STOCK EXCHANGE l www.mse.mn


    MONGOLIAN STOCK EXCHANGE l www.mse.mn

    11

    Future Prospect for Mongolian Stock Exchange


    Current Market Cap doesnt reflect the full market potential
    Billions
    USD

    Tavan
    Tavan Tolgoi
    Tolgoi
    Oyu
    Oyu Tolgoi
    Tolgoi

    Mongolias Top
    20 listed
    companies
    account for 86%
    of the current
    market cap

    MIAT
    MIAT
    Erdenet
    Erdenet
    $4+ bln

    $15-20 bln

    MMC
    MMC
    Oyu
    Oyu Tolgoi
    Tolgoi
    South
    South Gobi
    Gobi
    $15 bln
    MCS
    MCS Group
    Group
    Mobicom
    Mobicom
    Tavan Bogd
    $5 bln

    MONGOLIAN STOCK EXCHANGE l www.mse.mn


    MONGOLIAN STOCK EXCHANGE l www.mse.mn

    = $45 bln POTENTIAL

    THANK YOU FOR YOUR ATTENTION


    MONGOLIAN STCK EXCHANGE JSC
    Chinggis Square 2, Ulaanbaatar, Mongolia
    Fax: (976)-11-313 747
    Website: www.mse.mn

    MONGOLIAN STOCK EXCHANGE l www.mse.mn


    MONGOLIAN STOCK EXCHANGE l www.mse.mn

    10

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