Two Japanese firms and state-owned Myanma Economic Bank (MEB) signed a joint venture agreement to establish Myanmar’s first-ever stock ex- change, Yangon Stock Exchange on 23rd December 2014 in Naypyitaw.
The joint venture comprises of 51 percent of shares by Myanma Economic Bank, 30.25 percent by Daiwa Institute of Research Ltd, and 18.75 percent by Japan Exchange Group, according to the government news- paper on 24th December 2014.
Union Finance Minister U Win Shein not- ed that business frims listed on YSX will be able to raise capital for long-term invest- ments, while people can buy and sell shares of those firms.
Yangon Stock Exchange will be located at former Union Bank building on Sule Pagoda Road near Merchant street. The renovation of the building is scheduled to complete in June or July, while YSX is expected to open at the end of 2015.
The agreement is reached after long and conscientious negotiations between the authorities of Japan and Myanmar to set up and operate the first stock exchange in Myanmar.
The parties have been engaged in discussions since 2012, when Central Bank of Myanmar (under and on behalf of Ministry of Finance and Revenue, MOF), Tokyo Stock Exchange Group, Inc. (TSE) and Daiwa Institute of Re- search Ltd. (DIR), the core information-gen- erating arm of Daiwa Securities Group, con-
cluded a memorandum of understanding to cooperation toward establishing a securities exchange and supporting the cultivation of a capital market in Myanmar.
The partners will set up Yangon Stock Ex- change Joint-Venture Company Limited with 32 billion kyats (US$ 31 million). There will be three Myanmar directors from Myan- ma Economic Bank, including the company president, and one from each of the Japa- nese firms.
Based on the agreement, the companies will closely work together with the stock exchange preparatory committee formed by MOF to take necessary steps for the establishment of a joint-venture company in preparation for the launch of the stock exchange.
DIR is expected to be engaged in the develop- ment and management of computer systems, while Japan Exchange will be providing the knowledge of how in running the exchange. TSE and DIR will continue to contribute
to the development of Myanmar’s capital market and the expansion and deepening of economic relations between Japan and Myanmar through the establishment of Yangon Stock Exchange.
Daiwa has also established some of the information technology infrastructure re- quired for a modern stock exchange in offic- es at MICT Park in Hledan township.
