Mumbai: Six member countries of the Association of Southeast Asian Nations (ASEAN) - Singapore, Thailand, Malaysia, the Philippines, Indonesia and Vietnam - would jointly set up a common stock exchange for regional trading in big-cap stocks, according to Nongram Wongwanich, a senior executive vice president of the Stock Exchange of Thailand (SET).
Under the plan, the six Southeast Asian countries would exchange large-cap stocks in each participating country on the new trading board. Bid and offer prices and trading orders would, however, be conducted in the home currency of individual companies, Nongram said, adding that the regional common bourse would be ready to start trading in late 2008.
"The objective in setting up this common market is to boost the attractiveness of the Asian market, where individual market sizes are still small, in order draw interest from foreign investors," she added.
"This initiative will make the Asian market a single product for investors, who currently have to take time and consume lots of capital to make their investment in each local bourse," she said.
Heads of the six stock exchanges will meet in Bangkok on Sunday to work out details of the plan, including regulations and money transfer norms.
"Hopefully some of those currently trading on the SET50 index could be traded in the new market late next year," Nongram said.