“Resource companies represent approximately 50% of the 2,200 companies listed on ASX”

Interview with Eddie Grieve, Senior manager, Listings Business Development at the Australian Securities Exchange.

-Can you explain the collaboration between the Australian Security Exchange (ASX) and Mongolian Stock Exchange (MSE). Are there any reasons the ASX chose to focus on the MSE?

-There is no current collaboration between ASX and MSE. The ASX had a friendly meeting with MSE during its recent visit to Mongolia and discussed areas of broad mutual interest, including the potential to encourage dual listing of companies with Mongolian resource projects. The ASX does believe in connections and cooperation with other markets where benefits can be generated for its customers and investors.

-How do you see the collaboration between two stock exchanges developing? Australian companies have increased their presence in Mongolia. Is this their way of opening up investment in Mongolia? 

-The main opportunity appears to be in encouraging dual listing of companies with Mongolian projects, assets or businesses. An ASX listing can open up an important source of international equity funding for Mongolian resource projects, while a dual listing on the MSE can facilitate continued investment exposure to the projects for the Mongolian people.

-The ASX is the 7th largest stock exchange in the world. How did it achieve this ranking?

-The strength of the ASX Group is its diversified business model, as a multi-asset class, vertically integrated exchange group, servicing the needs of clients across a wide range of financial instruments. Two of the most significant developments underpinning ASX’s scale were its demutualisation and listing on its own market in 1998, and the merger with the Sydney Futures Exchange (bringing equities and derivatives together) in 2006.
ASX’s market capitalisation is approximately A$5.5 billion. More information can be found on page two of the 2012 Annual Report regarding comparisons with other exchange groups: http://www.asxgroup.com.au/media/PDFs/ASX_Full-Year_Annual_Report(1).pdf

-Do you have a rough idea of what percentage of the world’s investments pass through the ASX on an annual basis?

-No, sorry, we don’t. Best to check for data on the WFE website: http://www.world-exchanges.org/
However, we do estimate that approximately 47% of the value of the Australian equity market is owned by international investors.

-Because Australia is predominantly a mining country, is the ASX mostly filled with mining companies?

-While mining is a very important industry for Australia, it is worth noting that of the top 10 largest companies listed on the ASX – four are banks, two are largely retailers, and there is a media company and a telecommunications company as well.

Resource (mining and energy) companies represent approximately 50% of the 2,200 companies listed on ASX. In market capitalisation terms, resource companies currently represent approximately 27% of the total A$1.3 trillion capitalisation of the Australian market.

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