Source: The Mongolian Mining Journal    Date: May 26, 2010

Mr. Ch.Otgochuluu, advisor to the President, was recently in Germany to study the operation of the Frankfurt Stock Exchanges and the legal environment regulating the capital markets in Germany. He feels at present Mongolian owners of companies do not have the required professional expertise to raise money in foreign markets. Appointing foreign consultants is a very expensive proposition. Some stock exchanges also stipulate that a company has to be listed on a domestic stock exchange first, and the capital raised there has to be offered as collateral if the company wants to be listed abroad.

All this will take time, but if the Mongolian Stock Exchange is developed instead, foreign companies could well agree to trade their shares here. Gradually at least some of the billions of dollars circulating on the foreign stock exchanges will flow to Mongolia.  Wages will rise here, and qualified Mongolians will not have to migrate.  With proper management skills and a stable and satisfactory legal environment, Mongolia can well become a major financial center, at least regionally. He is confident that Mongolians have “the latent capability to do well, all we need is the impetus and incentive”.