The year 2022, which marks the 31st anniversary of the establishment of the stock market in Mongolia and the establishment of the Mongolian Stock Exchange, will be a remarkable year for the industry. Specifically, at the Cabinet meeting on June 29 of this year, the resolution and decision to offer 34 percent of the Mongolian Stock Exchange to the public and convert it into an open joint-stock company was supported, which laid the foundation for the next stage of development of the Mongolian stock market. strengthened.

2022 Highlights:

Procedure Updates:

In the first half of this year, the Mongolian Stock Exchange made major decisions to increase the activity of stock market participants and expand the scope of the market.

For example, in order to increase the participation of professional or institutional investors in the capital market, the "Procedures for Registration of Unit Rights of Mutual Closed Investment Funds" have been revised and approved. As a result, the registration service fee paid by investment funds when they register their units on the Mongolian Stock Exchange and collect funds from the public has decreased by 50-75 percent, and the annual service fee has decreased by 50 percent.

Also, by making amendments to the "Securities Registration Regulations", the fee for company share registration services will be reduced by 10-40 percent, and the fee for company bond registration services will be reduced by up to 36 percent. 100 percent exemption of the trading fee payable by the issuer was a historic decision that will have real results in the development of the stock market.

In addition to the reduction in fees and commissions of the Mongolian Stock Exchange, the approval of the "Procedure of Information from Securities Issuers to the Public" has opened up opportunities for citizens and the public to receive the necessary information for making investment decisions without delay.

 • Trading:

In the first half of 2022, the TOP-20 index, which is the main indicator determining the trend of the domestic securities market, reached 44,119.22 points, while the minimum indicator was 32,795.68 points and the average indicator was 37,759.42 points. The lower indicator decreased by 713.33 units or 2.13 percent compared to the same period of the previous year and reached 32 795.68 units.

As of June 30, 2022, the market capitalization reached 4.84 trillion MNT, an increase of 1 trillion MNT or 27.2 percent from the same period of the previous year. This figure is 1.18 trillion MNT or 19.6 percent less than the beginning of the year.

As for securities trading, in the first half of 2022, a total of 122 transactions worth 276 billion MNT were made. Specifically, 151 million shares of 135 joint-stock companies were traded for 114 billion MNT in the secondary stock market, 580,000 securities were traded in the primary and secondary market of asset-backed securities for 58 billion MNT, and 4.9 million units were traded in the secondary market of investment fund units. rights for 2.3 billion MNT, and 940,000 bonds were traded for 102 billion MNT in the primary and secondary markets of the company's bonds. During the reporting period, an average of 1.3 million securities were traded for 2.3 billion MNT per day.

New products:

Asset-backed securities were traded on the Mongolian Stock Exchange for the first time last year, and in the first half of 2022, two more companies offered asset-backed securities to the market. In the first quarter of this year, the primary market trading of the asset-backed securities of "Omni active TK" LLC with the value of 5 billion MNT was organized, and in the second quarter, the initial market trading of the asset-backed securities of "Simple Asset TK" LLC with the value of 50 billion MNT was organized. offered to the market.

Also, in the first half of this year, in addition to organizing the primary market trading of bonds worth MNT 3.1 billion of the 2nd tranche of "Landmn BBSB" JSC, as well as the first floating rate bond of the 4th tranche of 76.6 billion of the 4th tranche of "Erdenes Tatogol" JSC. The primary market trading of bonds with the amount of MNT was organized.

In addition, "Erdenes Solutions" JSC and "Invescor BBSB" JSC offered their additional shares in the primary market, which created high demand and successfully attracted investment by implementing "green shoe" during the trading process.

• Financial efficiency of MSE:

In the first half of 2022, MGB SPC achieved a total income of 1.6 billion MNT from operations and recognized expenses of 958.8 million MNT in the financial statement, resulting in a net profit before tax of 699.5 million MNT. The main economic indicator and target level of 2022 is to fully cover the total operating expenses with the company's operating income and bring the cost per 1 MNT of sales revenue to 54 MNT.

During the reporting period, in addition to paying 251,376 USD in fees related to the use of the MIT system, which is a market infrastructure, in accordance with the relevant laws, rules, and regulations, the total taxes and fees of MNT 441.6 million were paid on time to the State budget, contributing to the State budget.

In this way, despite the difficult economic situation after the pandemic, we have worked together with market regulatory organizations and participating organizations to reduce fees and charges for products and services, support new products and services, and started implementing some additional changes to some rules and regulations. the number of products has increased, as well as the further development of the capital market, and we are working to create expectations that will give real results to the economic development of the country.

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MONGOLIA STOCK EXCHANGE