Tokyo Stock Exchange Group Inc. and Daiwa Securities Group Inc. said Wednesday they have reached an agreement with the central bank of Myanmar to set up a stock exchange and help grow a capital market in the country.
Myanmar aims to establish a stock exchange by 2015 to raise crucial corporate capital and stimulate economic growth.
The announcement follows a historic landslide victory by Aung San Suu Kyi and her opposition party in by-elections April 1, which prompted the United States and European nations to consider relaxing sanctions and boosting business interests in the country.
"We are very pleased to help Myanmar's new stage to form a capital market with the TSE, after having supported the country for more than 15 years," Takashi Fukai, president of Daiwa Institute of Research, said in a statement.
"I'm sure development of a capital market will contribute to the country's overall growth," said TSE President and CEO Atsushi Saito.
The Daiwa Institute of Research, a Daiwa group think tank, will promote a capital market in Myanmar, as well as help build a modern financial system and IT systems. The TSE will provide knowhow on running a stock exchange, including screening companies for listing and establishing regulations for buying and selling stocks.
In 1996, Daiwa Institute of Research helped Myanmar set up the Myanmar Securities Exchange Center Co., a tiny over-the-counter broker where a few issues are traded.