Cambodia Investment Review

Cambodia’s Stock Trading Accounts Project to Double in 2024 After Launch of New API Linkage & Planned Online Account Opening Platform

Cambodia’s Stock Trading Accounts Project to Double in 2024 After Launch of New API Linkage & Planned Online Account Opening Platform

Cambodia Investment Review

Cambodia Securities Exchange is recording a surge in trading accounts, already growing by 31% year-on-year to reach a total of 43,974 at the end of Q3 2023. This robust growth comes as the Securities and Exchange Regulator of Cambodia (SERC) and the CSX entered into a formal agreement for a new API Linkage on Investor ID Online and Trading Account Opening Online.

Read more: CSX forecasts record growth for Cambodia’s capital markets in 2023

CEO of the CSX H.E. Hong Sok Hour.

This new API linkage aims to simplify and speed up trading account opening. It will also facilitate a seamless experience where investors can use a single platform to apply for both an investor ID and a trading account. Once a securities firm reviews the investor information, the trading account will be immediately activated, allowing for instant money deposits and trading activities. The Online Account Opening Platform is expected to have a soft launch in early November 2023, followed by its official introduction during the My First Stock Exhibition scheduled for November 16, 2023.

Investor Accounts Projected to Almost Double In 2024

Speaking at the ceremony, CEO of the CSX H.E. Hong Sok Hour highlighted the rapid development of the Cambodian securities market in terms of the number of new investors. “With the forthcoming introduction of online trading account opening, we are expecting an increase of around 40% in the number of new trading accounts in 2023,” he said. “Moreover, this number is projected to almost double in 2024, adding between 30,000 to 50,000 new trading accounts.” He went on to add that current stock prices are relatively low for various reasons, presenting what he described as a “golden opportunity” for investors to enter the market.

Chairman of the SERC, His Excellency Sou Socheat.

Chairman of the SERC, His Excellency Sou Socheat revealed that this online trading account initiative is part of the first phase of the new Royal Government’s Pentagon strategy. This strategy is being implemented under the leadership of Samdech Moha Bovorthipadi Hun Manet, the Prime Minister of the Kingdom of Cambodia. “In line with this strategy, the securities sector is undergoing significant modernization. We have already launched Investor ID Online and the CSX Trade securities trading app. Cash transfers can now also be completed through a mobile app, and soon we will officially introduce the online trading account opening platform,” said H.E. Sou Socheat.

Education & Support Measures in Place

In anticipation of a rapid influx of new investors, measures are being put in place to ensure support and education. H.E. Sou Socheat noted that the SERC, CSX, and securities firms are collaborating to organize training courses and various educational programs aimed at boosting investor confidence and awareness. He stressed the importance of setting up “friendly investment mechanisms” that will make it easier, more efficient, and more lucrative for people to invest in Cambodia’s growing securities market.

New API Linkage on Investor ID Online and Trading Account Opening Online on 25 October 2023.

The Cambodia Stock Exchange is aiming for significant growth and modernization, buoyed by supportive government policies and an increasing number of trading accounts. The implementation of the Online Account Opening Platform and the concerted efforts to educate and support new investors signify promising developments for the future of Cambodia’s securities market.

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