Mr Sung Hee Hong, director of Global Business development department of South Korea, is visiting to Mongolia. They met with the Mongolian Stock Exchange authority regarding “IT system introduction”. It was clarified from Mr. R.Sodkhuu, Executive Director of the Mongolian Stock Exchange.
Q: Information System of MSE will be reformed. What would you say about it?
R.Sodkhuu: Current equipment and system was installed in 1994 by Australian Aid. But now Information Technology must be innovated and reformed. Therefore, MSE is about to introduce “IT system” within the framework of project “Strengthening Human Resource and innovating equipments and technology of MSE”
Q: What is the peculiarity of the system?
R.Sodkhuu: Upon introduction of this system, share, stock and bond can be traded in the world market. In other words, we can buy shares and stock of the world financial market from our home. On the other hand, people can raise fund from the world market.
Q: Why you choose South Korea? Can any other countries introduce this system?
R.Sodkhuu: We selected South Korea, after studying and comparing Asian 5 and European 3 countries. Also according to our calculation, this system innovation requires 15 million US$. But South Korea offered 8.2 million US$. Such fund will be raised from the donor countries and IPO at the MSE. Two cities of China and, Vietnam, Kazakhstan is introducing this “IT system”.
Q: State budget ha loss of 240 billion MNT. It said that this deficiency will be covered by issuing bond. Can this amount of bond be sold?
R.Sodkhuu: Yes, it can. Because when this system is introduced, the Government Bond can be sold at the foreign stock markets. Therefore, it can.
Q: When this project will be finished?
R.Sodkhuu: By the end of the next year, literally December.
Q: Does decrease of shares relate with the inflation? TOP-20 index was over 12,000 but it is in 4 digits now.
R.Sodkhuu: Usually, share price usually increases from mid-December till April. Stock Holding Companies distribute dividends in April, therefore it is the main reason of increase of share price. But share price decreases starting from May 31. Share is the market product. Therefore, decrease of share price is normal.