Fund vows to drive capital market development

The Capital Market Development Fund (CMDF) has reaffirmed its commitment to driving sustainable development in Thailand’s capital market, which faces both external and domestic challenges.

- NUNTAWUN POLKUAMDEE

Aslowing economy, elevated house-hold debt, static tourist arrivals, market fraud, and selling pressure from maturing long-term equity funds (LTFs) all weigh on the capital market, said Kitipong Urapeepatanapong, chairman of the CMDF board.

These factors have contributed to the Thai bourse stagnating, said Mr Kitipong, who is also chairman of the Stock Exchange of Thailand (SET).

“The new Thai ESG Extra [ESG X] funds have so far drawn relatively limited capital to lift the SET,’ he said.

“If inflows continue to underperform, it may be necessary to extend the investment period and encourage more investors to switch from maturing LTFs to Thai ESG X funds.”

Efforts should focus on increasing public awareness and promotion of Thai ESG X funds, said Mr Kitipong, as there are no plans to change the fund’s terms or conditions.