Foreign investors bought over 6 billion baht worth of Thai stocks; the Stock Exchange of Thailand accelerates fundraising for the new economy.
The Stock Exchange of Thailand (SET) views the Thai stock market as a continued target for foreign investors, following net capital inflows exceeding 60,000 billion baht since the beginning of the year. The SET is moving forward with adjustments to regulations to accommodate New Economy companies, reducing profit constraints, accelerating the IPO process, and promoting BOI 2.0 criteria to attract high-potential companies to raise capital.
July 21, 2569 Mr. Atsadej Kongsiri, Director and Manager of the Stock Exchange of Thailand (SET) It has been revealed that the overall Thai capital market has consistently attracted interest from foreign investors in recent months, due to their confidence in Thailand's economic fundamentals and political stability following the election. This has resulted in a significant inflow of foreign capital back into the Thai capital market.
Currently, the Thai stock market index is considered one of the world's outstanding performers, supported by investment promotion measures from the Board of Investment (BOI) and government policies that build investor confidence.
Since the beginning of the year until now, foreign investors have made net purchases of more than 60,000 billion baht in the Thai stock market. Even during the period of tension from the war situation, the amount of investment decreased to about 20,000 billion baht, but after the situation eased, investment flowed back in steadily.
"What is clearly reflected is that the majority of the capital inflow this time comes from long-term funds, not just short-term capital or hot money from speculators. This reflects the confidence of foreign investors in the Thai economy and helps create stability in the capital market in the long term." Mr. Atsadet said
However, it is still necessary to closely monitor risk factors from the global situation, especially conflicts in the Middle East, the war in Iran, and the direction of energy prices, which may affect the volatility of global financial markets.
Mr. Assadej stated that the Stock Exchange of Thailand (SET) continues to develop the Thai capital market into a fundraising source that meets the needs of the new economy. The SET is currently revising its listing criteria to align with the New Economy by relaxing the requirement for retroactive profit over the past three years. This aims to provide greater access to the capital market for promising companies, even those in the early stages of growth.
“Many modern businesses have high growth potential, but their business operations may not yet meet the traditional profitability standards. This adjustment to the regulations will help these companies access funding more quickly and enable the Thai capital market to better support future industries.”
At the same time, the Stock Exchange of Thailand is working with the Securities and Exchange Commission (SEC) to streamline the Initial Public Offering (IPO) process, reduce unnecessary steps, and help businesses raise capital in a timely manner to seize business opportunities.
The guidelines for supporting New Economy companies have already undergone a public hearing and are awaiting approval from the SEC (Securities and Exchange Commission of Thailand). Clarity on the "BOI 2.0" guidelines is expected within the third or fourth quarter of this year, aiming to attract more companies to invest in Thailand and list on the Stock Exchange of Thailand.
Furthermore, the Stock Exchange of Thailand (SET) is promoting a "senior-junior" collaboration model, encouraging large listed companies to help businesses in their supply chain adopt the E-Tax Invoice system. This aims to accelerate the transition to digital transformation and elevate the business standards of SMEs.
"If large companies can help upgrade businesses in their supply chains to digital systems, it will benefit both the business sector and the country's economy in the long term. The government may consider incentive measures to support this type of cooperation," Mr. Assadej said.
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