00:00The question is whether those measures will work. What's the sense you're getting?
00:06Well, it's something we have to do. Look, I think Thailand, as you said, the economy has been a bit sluggish in the past.
00:13But from a stock exchange perspective and together we've been working closely with the Thai SEC on this.
00:18We do recognize that a radical change in how we work to encourage and to basically do our role for the economy,
00:27being the place of raising capital to help grow and accelerate the economy is our core business and our core function.
00:38Well, the thing is, if you listen to investors, they say that the reason why the Thai market is lagging behind its Asian poor peers is because of valuation, because of liquidity.
00:48To what extent are you addressing these issues?
00:52So I think valuation comes back to fundamentals.
00:55One of the things that we've been encouraging the Thai companies listed here is to really focus on growing their earnings.
01:04Ultimately, it comes down to bottom line.
01:06So one of the programs that we launched earlier in this year or mid-year called Jump Plus.
01:10We named it Jump Plus, but it's effectively similar to the value-up programs in Korea and Japan,
01:15where we're hoping that companies will come out with plans over the next two to three years of what investments they're going to make
01:23and what changes or what positive impacts those will have to their bottom line.
01:30And these will be communicated to the international communities, to the local investors, hopefully by the first quarter of next year.
01:36We currently have about 67 companies signed up for this program already, more in the pipeline, of course.
01:45And then you mentioned liquidity.
01:47It's something that we're looking at as well as how to ease regulations.
01:53We know that in the past 20-plus months, I think we've been putting in a lot of regulations that have impacted liquidity for certain reasons in the past.
02:05We will look to review that early next year.
02:08We've made a promise mid-this year as well that we will not look to touch or change any regulations for the remainder of the year.
02:16And we will hold to that.
02:19How might you ease regulations to attract more foreign flows?
02:25What are you looking at?
02:26Well, so part of the trip, I'm now in Hong Kong,
02:29so part of the trip here is to come and listen to our international investors.
02:35We want to hear back from them, feedback, what their thoughts are about the Thai market, how about our market structures.
02:42So, for example, we have this thing called the uptick rule.
02:45I think our uptick rule is slightly unique in the world where it's across the board.
02:50So maybe changes there needs to happen to ease effectiveness of market mechanisms, for example.
02:56How challenging is it, because it seems that it is an uphill task.
03:04If you take a look at how the market reacted to the BOT standing pad, it was pretty muted.
03:12Is monetary policy now no longer a catalyst even for Thai investors?
03:17Look, I think there's multiple factors involved here.
03:23Monetary policy is one that helps.
03:27I think the Bank of Thailand has been quite clear that they're willing to be patient to see how the impacts of past rate cuts will have on the Thai economy going forward.
03:39The Thai political situation obviously is relatively new.
03:46We have a new government in place that are looking to encourage investments, stimulus, and we'll see how that works out as well.
03:54So I think it needs to be looked at in multiple factors.
03:57We've seen how hot the IPO market has been for Hong Kong, for India, and several other countries.
04:06How are you looking at it?
04:07I mean, what's being done to attract possibly dual listings, to attract all those foreign funds into Thailand?
04:15Well, we have quite a strong IPO pipeline at the moment.
04:19At least 30-plus companies have filed for listings in the past.
04:22Obviously, the market situation has delayed many of those listings.
04:27We're looking at a pickup right now.
04:29So in the past two weeks, I think we've had two or three new listings on the market.
04:34And we're hoping that with this market performance or pickup in the last two to three months, people are really looking at their options on raising capital on the market.
04:47So that pipeline hopefully will materialize over the next two quarters.
04:51Ultimately, when you mention dual listings, it's something that we've been discussing with our partner exchanges.
05:01So yesterday I met with the Hong Kong Exchange.
05:03The same topic was mentioned.
05:05It's an option that we're looking at, and we're looking to study with our exchange partners in the region.
05:13We want to together hold capital within Asia, and I think we need to help each other to do that.
05:18So how soon might dual listing happen?
05:24I think regulations, actually regulations in general in exchanges in the region are in place that allows dual listings.
05:32But obviously, the devil's in the details.
05:34So all the regulatory differences in each market needs to be moved to align.
05:41So it's not the exchanges itself alone that needs to work together.
05:46We need to encourage the regulators, the SECs of each country, of each market to work with us as well.
05:53Well, I can't tell you of a timeline, but look, yes, please go ahead.
06:00No, I'm happy to hear about your timeline.
06:02Do share.
06:04I wish I did have a timeline.
06:06Look, we're working on it.
06:09And then we'll update via Bloomberg as soon as we have something more concrete.
06:13We're looking forward to that.
06:16Kun Asadet, we heard how Vietnam's being upgraded to emerging markets from frontier status.
06:23Might Vietnam be pulling those funds away from Thailand?
06:27Do you see Vietnam now as competition?
06:33Nah, I don't think we would call it competition.
06:36Look, Vietnam has a very vibrant economic outlook.
06:39They have a slightly different demographic than the majority of other Asian nations, for example.
06:47So I think over a course of ultimately investors look at valuation.
06:52So it's relative.
06:53We need to do the work in our country to make our stocks, our market more attractive from a valuation perspective,
07:01from an earnings outlook perspective, from a structural regulatory perspective as well.
07:05So each market has to do its part to encourage investors and capital flow.
07:12So when FTSE Russell says that, you know, it expects an additional $6 billion in inflows for Vietnam,
07:19that's not coming from the expense of Thailand, just to get it right.
07:25I hope not.
07:26We'll do our best so that it doesn't happen that way, of course.
07:30Kun Asadet, as of today, you've imposed trading curbs on Delta, Thailand.
07:38Why is that?
07:39What's the thinking behind that move?
07:42Well, ultimately, we look to warn investors.
07:46If you look at the fundamentals and the liquidity within the Delta stock itself,
07:53where pricing, price-to-earnings, price-to-book ratios, and together with what the company has announced itself,
08:02they've announced that there's no additional information within the company that they need to tell the market or the market doesn't know already.
08:11So even though the company itself is signaling that at this valuation, it's tough to justify.
08:20And therefore, we're asking investors to really, really look at the information flows
08:24and look at this investment or making their investment decisions carefully.
08:30So you're saying that the price rally we're seeing in the stock is not justified,
08:36even though some may say it is an AI play.
08:39And when you take a look at how extended valuations for AI players are around the world,
08:46it's also a cause for concern.
08:49Yeah, I think we look at it across the board.
08:52So obviously, we're not looking at Delta as a single stock issue.
08:58We're looking when we make these decisions, not only for Delta, but for other stocks.
09:03We look across the board at benchmarks, both in-country and globally, to see on a relative basis whether it makes sense as well.
09:12And I think this is not a huge impediment to investors.
09:16It's just a signal that hopefully they think twice or think carefully of the information that's available.
09:25I think the company has been very good at providing information and updates to the industry, to investors.
09:32And that needs to be taken into account as well.
09:35As a whole, on a broader basis, when you take a look at valuations of AI plays, AI trades, are you concerned?
09:42Is there reason to be concerned?
09:44I mean, people are now beginning to talk about that AI bubble bursting, maybe not immediately, but soon enough.
09:50Well, I think you have to ultimately, at certain points of the valuations across the industry, you need to look at information specific to each businesses.
10:02Obviously, there's been news across the world.
10:04There's been transactions that may drive pricing in different ways away from fundamentals as well.
10:10And ultimately, at a certain level, I wouldn't be able to say whether it's a bubble will burst or not.
10:19But I would advise investors to look at specific information in each company.
10:26And of course, when it comes to the political scene in Thailand, that's also something that investors are focused on.
10:34Elections due next year, do you think there's any, I suppose, jitters in the markets among investors?
10:40Investors that elections are coming up?
10:43Or could that be a bonus?
10:44Could that be a plus to markets?
10:47The way we look at it, at least from the feedback that I hear from investors, I think investors generally are quite used to the activities, the political activities in Thailand.
10:58There's always changes.
10:59But in this instance, we believe that it's heading hopefully in the right direction, that eventually, post-election next year, we'll have a stronger, potentially a coalition government again.
11:13But again, hopefully a stronger and more stable government.
11:17Because ultimately, what investors and ourselves are looking at or looking for is policies that are implemented.
11:27In the past, we hear very often that investors do like all the policies that have been publicly told or broadcasted by past governments.
11:39But they're all waiting for it to happen, to see actual investments in those policies.
11:44So we can be forever hopeful, I think.
11:48And are you hopeful that there'll be a turnaround in growth in the economy?
11:54Ultimately, yes.
11:55Yes, because ultimately, if those policies, because I think every government has come up with good policies.
12:01So if they can remain stable enough to implement them, I think it will be a positive for the economy overall.
12:11Because ultimately, we like certainty of investments.
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