Asean Exchanges to accelerate products, ESG development
The Philippine Stock Exchange, Inc. (PSE) on Friday hosted the 38th Asean Exchanges CEOs Meeting on Boracay Island.
The meeting focused on priority initiatives to promote the Association of Southeast Asian Nations (Asean) as an asset class, highlighting its unique investment qualities.
The meeting also tackled activities related to the creation of a unified ecosystem for sustainability solutions among publicly listed companies and capital market stakeholders.
Depository Receipts (DRs) are among the investment products seen to generate interest in the Asean capital market. Singapore Exchange (SGX Group) and The Stock Exchange of Thailand (SET), the early adopters of the DR program among the member-bourses, have listed a combined total of 17 DRs and have more than doubled the assets under management of these DRs last year.
Other ASEAN Exchanges are keen on replicating the success of SGX Group and SET and are now in various stages of regulatory framework development and stakeholder engagement.
On the sustainability front, following the November 2024 announcement, the Asean-Interconnected Sustainability Ecosystem (ASEAN-ISE) Participating Exchanges issued a Request for Information (RFI) in February, receiving strong industry interest.
A joint briefing on the RFI by the Asean Exchanges last week saw participation from more than 120 representatives from 35 organizations, which included solution providers, credit bureaus, technology firms, information vendors and consultants.
The RFI seeks market insights to develop a unified Asean regional ecosystem, which includes a centralized sustainability data infrastructure and a digital marketplace for technology-based sustainability solutions.
To showcase its product and sustainability programs, the Asean Exchanges committed to beef up the content of its website, which has seen a doubling in visitor activity among institutional investors. The group is also planning to host the next Asean-themed roadshow in Hong Kong in the second half of the year. This follows successful roadshows held in New York, USA in November 2022 and Melbourne, Australia in March 2024.
“The initiatives we are pursuing form part of our response to the dynamic changes in the markets and the urgent need to implement sustainable programs and solutions. The early indicators of the DR program between SET and SGX highlights the potential of cross-border products to enhance market liquidity and investor interest in ASEAN. The steady progress of DR development across ASEAN markets underscores our collective effort to create a more integrated and vibrant regional asset class,” PSE president and CEO Ramon S. Monzon said in a press statement on Tuesday.
CEOs and heads of delegation of Bursa Malaysia, Indonesia Stock Exchange, SGX Group, SET and Vietnam Exchange (VNX) attended the meeting, together with the acting chair of the Ho Chi Minh Stock Exchange, CEO of the Hanoi Stock Exchange as well as the vice chair and chief operating officer of Cambodia Securities Exchange and the CEO of Lao Securities Exchange (LSX) as observers.
