On his return from a visit to
Germany to study the operation of the Frankfurt Stock Exchanges and the legal
environment regulating the capital markets in Germany, Ch.Otgochuluu, advisor
to the President, has told The Mongolian Mining
Journal that at present not many Mongolian
owners of companies have the required professional expertise to raise money in
foreign markets. They also do not have the resources to appoint foreign
consultants. 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”.