The Cambodian Stock Exchange (CSX) - why is it not working ?

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Re: The Cambodian Stock Exchange (CSX) - why is it not working ?

Post by SternAAlbifrons »

Ptth..
You win some you lose some.
- nearly as much as on the slots if you are a day trader
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Re: The Cambodian Stock Exchange (CSX) - why is it not working ?

Post by nerdlinger »

How easy is it to trade on CSX as a retail trader? And has anyone created an ETF yet?
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Re: The Cambodian Stock Exchange (CSX) - why is it not working ?

Post by SternAAlbifrons »

Talking about trading. Some bloke on Fox tonite was squarking that more than a few hedge funds will be on the rocks
- in the next 10 to 14 days!
He reckons these "anarchist" short squeeze players have broken more banks than is yet realised. or admitted.

??
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Re: The Cambodian Stock Exchange (CSX) - why is it not working ?

Post by newkidontheblock »

nerdlinger wrote:How easy is it to trade on CSX as a retail trader? And has anyone created an ETF yet?
You would really want to put serious money in it?

A market with no transparency, no protections.

Where the various players don’t have to give open, full reports at least once a quarter.

You’re a lot braver than I thought.
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Re: The Cambodian Stock Exchange (CSX) - why is it not working ?

Post by nerdlinger »

newkidontheblock wrote: Fri Jan 29, 2021 9:48 am
nerdlinger wrote:How easy is it to trade on CSX as a retail trader? And has anyone created an ETF yet?
You would really want to put serious money in it?

A market with no transparency, no protections.

Where the various players don’t have to give open, full reports at least once a quarter.

You’re a lot braver than I thought.
Nothing I can’t afford to lose, natch. But I’ve got a feeling that over the next 10 years Cambodia is going to see some explosive growth, and people will look back on this year as having been the ideal time to buy.
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Re: The Cambodian Stock Exchange (CSX) - why is it not working ?

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Image
March 31, 2021
Investors cry foul after firm temporarily shuts
Buth Reaksmey Kongkea / Khmer Times
Hundreds of people are filing a lawsuit against GFX investment over what they feel is a money scam.
Some investors are seeking government leaders intervention to resolve a dispute with the owners of GoldFX Investment Co Ltd (GFX) to repay more than $27 million which they invested with the company.

The appeal was made after GFX on Monday officially announced its temporary closure due to technical problems that interrupted its trading operations.

One of the victims, who asked not to be named, told Khmer Times that he made his first forex investment with the company in February 2019.

The man said that GFX was owned by two women, who are both listed on the company’s website as chairwoman Ke Suonsophy, and managing director Sar Channet.
Image
The victim said that he invested $20,000 with the company and he expected that he could earn between $1,000 to $20,000 every month.

He said that some other people invested from $100,000 to $200,000 with the company.

He added that he decided to invest with the company because he knew that the company was owned by government leaders and they are also from respected families.

“After I invested my $20,000 with the company, from the first month to the fourth month, the company always paid a monthly amount of between $1,000 to $1,500 at the end of each month,” he said.

“But for the next five months, the company paid only $100 per month, saying that it did not earn any income due to outbreak of COVID-19. I agreed with the company and accepted the payment,” he said.
Image
“But from January to March, the company did not make any payments to me,” he said adding that “Now the company has announced its closure and did not return my investment to me.”

According to the announcement by GFX dated March 29 and obtained by Khmer Times yesterday, the company has temporarily closed its operations due to technical problems that caused interruptions in trading operations.
https://www.khmertimeskh.com/50832198/i ... ily-shuts/
Images GFX website
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Re: The Cambodian Stock Exchange (CSX) - why is it not working ?

Post by Kahuna »

When the two directors of this company are married to a member of parliament and the other to a Vice President of the Ly Hour group of companies I can't see this ending well if it is indeed more than a "technical fault" causing the company to close at this time. However, it does have the marking of a Ponzi style scheme if the investor was receiving as he said "$1,000 to $20,000 every month" then after that first 4 months received about $100 a month and then nothing. I think that the 20 thousand figure was surely a typo and should read two thousand but in any case that is an incredibly high return on an initial investment of $10,000.
As @newkidontheblock wrote you are a brave person to invest money that may have been borrowed or even saved for your family in what is a unknown market.
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Re: The Cambodian Stock Exchange (CSX) - why is it not working ?

Post by nerdlinger »

CEOCambodiaNews wrote: Wed Mar 31, 2021 1:46 pm One of the victims, who asked not to be named, told Khmer Times that he made his first forex investment with the company in February 2019.
Yeah see forex isn’t investment, it’s speculation. No shortage of companies in every market willing to sell gullible people the same line.
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Re: The Cambodian Stock Exchange (CSX) - why is it not working ?

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Cambodians burned as forex trading company halts operations
Politically connected platform GFX promised monthly returns of up to 10%
SHAUN TURTON, Contributing writerApril 9, 2021 14:11 JST

PHNOM PENH -- The abrupt closure of a politically connected investment company in Cambodia has left investors worried they may never recover their money -- and turned a spotlight on the country's nascent derivatives market.

GoldFX Investment, which says it earns returns for investors through foreign currency trades, announced a "temporary" suspension of operations in March but has yet to resume service.

GFX, as it is also known, is blaming the trouble on three foreign former board members whom it claims embezzled $20 million from the company, local news outlet Voice of Democracy reported.

That explanation, however, has not satisfied investors unable to access their accounts. Many have taken to social media to demand that the company refund their cash. "This is their responsibility" GFX investor Roum, who asked his surname be withheld, told Nikkei Asia.

GFX says on its website that it has more than 30,000 clients and handles "diversified forex investments" on its trading platform. The minimum amount for an account is $1,000, and one local news outlet reported that at least $27 million was tied up in the company.

The scandal has turned a spotlight on the relatively new market for derivatives trading in Cambodia, and, experts say, highlights the risk that inexperienced investors may not understand what they are getting into.

Stephen Higgins, a former bank chief in Cambodia, told Nikkei Asia that GFX's reports of monthly 5% to 10% returns were "absurd" from a forex trader. "You don't earn that much money consistently every month from FX trading," said Higgins, now a partner at investment management and advisory company Mekong Strategic Partners. He said there are other derivatives brokers and investment companies in Cambodia that have thrown up red flags, too, such as managers who appear to have no prior experience in finance.

The Securities and Exchange Regulator of Cambodia, or SERC, began issuing licenses for derivative traders in 2016. It has sought to promote the sector to retail investors, even holding roadshows throughout the country.

Regarding GFX, the regulator released a statement telling aggrieved investors to lodge an official complaint. SERC Director General Sou Socheat did not respond to Nikkei Asia's request for comment. He told the Khmer Times last year that the derivatives market grew from $5 million in 2017 to $200 million in 2019.

A fund manager with years of experience in the region said many local forex and gold derivative traders promised returns that were "just not feasible" and bled naive investors with commissions and service charges.

Such investors "have little to no fundamental understanding of finance, and usually get talked into thinking they can get rich quick, which is nearly impossible through trading in that way," the manager said. "This is not just a Cambodia issue as well, I've seen them all over the Mekong region."

Whether GFX will face any legal or regulatory action remains to be seen. The investment company's management has political connections in a country with a "pervasive culture of impunity" for government-linked individuals, according to a recent report from the U.S. State Department.

The chairwoman of GFX, Ke Suonsophy, is married to the son of Sar Kheng, Cambodia's interior minister and deputy prime minister. She is also the daughter of Deputy Prime Minister Ke Kim Yan, a general. The company's managing director, Sar Channet, is the niece of Sar Kheng. Channet is married to Ly Sopheark, vice president of LY Hour Group, a Cambodian conglomerate with interests in banking and finance.

GFX did not respond to a request for comment. In a statement on March 31, it called on investors to join a legal case against the former board members whom it accuses of embezzlement.
Full article: https://asia.nikkei.com/Business/Market ... operations
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Re: The Cambodian Stock Exchange (CSX) - why is it not working ?

Post by Kahuna »

Yet you can still open an account through their website and invest a minimum of $1,000USD.
Forex Brokers Today reviewed the company and gave it a 0.8 rating out of a possible 10 and gave the following reasons why -

CONS
Payment techniques are really so limited and crude
Not governed broker and the partner isn't fully regulated.
Spreads aren't competetive.
The design of the official site is therefore amateurish.


However most Cambodians would not have done any research and would have been caught up in the hyperbole of making quick and easy money which at least in one case it did seem to be (hence why it is very similar to the workings of a Ponzi scheme). Similar poor reviews are spread across the internet but that is as it seems now too little and too late for investors.

I think this will be swept "under the carpet" through various means and the first step issuing and using the tired and old excuse of overseas investors taking the money will be rolled out until it can be quietly forgotten about. The request by the company to join in a lawsuit is just another way of getting a bit more money from the already wronged investors and ensures the full bill does not land at the feet of the directors. Also blaming the 3 individuals "overseas" also takes the blame off the well connected local directors.
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