With over 200 companies listed on the Mongolian Stock Exchange over 60 percent is non-liquid, 95 companies are non-compliant and 32 companies have stopped trading according to the MSE.

They’ve approve a working plan to improve these companies’ compliance and improve listed company quality. The plans cover operations to do until the end of 2019 and include strict actions such as removing from MSE listing. Newly listed companies on the MSE have been consistently putting out financial and operations reports and holding shareholder meetings on time.

On the other hand, certain number of companies that were listed in the privatization period haven’t been complying with the rule and regulation according to the MSE. These companies can remain as a joint stock company if they are able to increase liquidity and transparency, if not they can reorganize to become limited liability companies (LLCs).

For example, from 1999 to 2016 Jinst Uvs JSC was traded less than 40 times with a total trading volume of MNT 53 million. However, when they merged with “Hurungu Oruulagch Undesten” (Investor Nation) closed JSC its trading activities increased and share price rose. Also, “Khuvsgul Altan Duulga” JSC issued additional shares which raised the company’s market price and increased liquidity of the stock.

Source: BloombergTv.mn