Mongolia beckons BNP Paribas Security Services - Investment Europe: "BNP Paribas Securities Services anticipates a burst of new business in Mongolia as asset managers attempt to tap into its commodities growth story.
Lawrence Au (pictured), head of Asia Pacific at BNP Paribas Securities Services (BNPP SS), says Mongolia is an “exciting frontier market” with an economy forecast to grow by 8% this year.
“Mongolia is booming because of its mining industry,” he says, adding that for the first time, coal exports from Mongolia have surpassed those from Australia, traditionally considered the main source of coal for Asia.
Until now, most asset managers trying to get exposure to the Mongolian growth story had two options. One was to make private equity investments in Mongolian companies, hoping they would make an initial public offering.
The alternative was to buy in to Mongolian companies listed on stock exchanges elsewhere in Asia. These two options are about to become less attractive, Au says, because there is a long list of companies on the verge of entering Mongolia’s relatively underdeveloped stock exchange."
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