Mongolian Market Updates | June 16th

🌄 Good morning!

Mongolia welcomed its 34th Prime Minister last week. Meanwhile, Ulaanbaatar is gearing up to host the prestigious 11th CAMCA Regional Forum (Central Asia–Mongolia–Caucasus–Afghanistan) on June 19–20, bringing together key leaders and influential voices from across the region. Dive deeper into these highlights and explore more engaging updates in this week's newsletter.

🗞️ In this week’s newsletter:

• G.Zandanshatar Takes Office as Mongolia’s 34th Prime Minister

• CMM Market Updates

• Market News

🟣G.Zandanshatar Takes Office as Mongolia’s 34th Prime Minister

🗳️ On June 13, 2025, the Mongolian Parliament confirmed G.Zandanshatar as the nation’s 34th Prime Minister, securing strong backing with 108 out of 117 MPs (92.3%) voting in favor.

✨ The new Prime Minister emphasized his commitment to fostering equitable and inclusive economic growth, aiming to ensure benefits reach every citizen. To fulfill these goals, he highlighted several key policy priorities:

1. Ensuring continuity in addressing crucial policy issues initiated by the previous government

2. Undertaking structural economic reforms and tax adjustments to ease the tax burden on citizens

3. Placing human development as the government’s largest and most significant "mega-project"

4. Reforming the welfare system to reinforce the principle that employment is the most effective form of social support

5. Bolstering the middle class by increasing taxes on luxury goods and the highest income earners

6. Focusing on to reducing losses across state-owned enterprises and enhance efficiency

7. Diversifying the economy away from excessive dependence on mining activities

8. Prioritizing ongoing projects according to their financing status, feasibility, and urgency

🌱 He also underlined his commitment to reshaping Mongolia's economy by limiting state intervention and proactively supporting private-sector growth.

📊 Given the nation's current challenging economic circumstances, the government plans to reduce budget expenditures by MNT 2.3 trillion and intends to submit the corresponding budget amendment to parliament soon.

🟣 CMM Market Update

🚆 Construction Officially Kicks Off for the Gashuunsukhait–Gantsmod Cross-border Railway

On June 15, construction officially commenced on the highly anticipated Gashuunsukhait–Gantsmod cross-border railway linking Mongolia with China. This strategic 32.6-km railway, designed with dual gauges (1520 mm broad gauge and 1435 mm standard gauge), will boast an impressive annual freight capacity of 40 million tons. The infrastructure includes bridges reaching heights of 8–31 meters, comprehensive border control facilities, and advanced technological structures.

This transformative project aims to nearly double Mongolia’s coal exports from 83 million tons to 165 million tons annually, adding around USD 1.5 billion in export revenue each year, and significantly contributing to Mongolia’s per capita GDP growth by approximately USD 1,000. It will substantially reduce transportation costs by 2–2.5 times. Furthermore, this major initiative will create around 200 permanent and 800 temporary employment opportunities. It will simultaneously connect crucial border checkpoints—such as Shiveekhuren–Sekhee, Bichigt–Zuunhatavch, and Khangi–Mandal—into a comprehensive railway network which will greatly enhance regional infrastructure.

🟣 CMM Market Update

🌟 Bank of Mongolia Ushers in a New Era for Mongolia’s Gold Market

Last week, Bank of Mongolia took a historic step forward in the nation’s gold market by signing a landmark international cooperation agreement with Switzerland’s prestigious Better Gold Association and globally renowned gold refiner Argor-Heraeus.

This groundbreaking initiative enables Mongolia’s small-scale and artisanal gold miners to directly supply their gold to prestigious global jewelry companies. It will create unprecedented market opportunities. Miners will also benefit from additional financial incentives for each kilogram of gold sold.

The first phase of this innovative collaboration will launch in Bulgan Province, with active participation from the local branch of Bank of Mongolia and the Precious Metals Assay Laboratory of Mongolia’s Agency for Standardization and Metrology. Economic experts highlight that this strategic partnership will significantly enhance transparency, responsibility, and fairness within Mongolia's gold mining sector. At the same time, reinforcing long-term economic stability and growth.

🏛️ Market News

• 📈 Significant Share Transactions in Mandal Insurance JSC [MSE:MNDL]

  Last week witnessed notable movements involving Mandal Insurance JSC’s shares, with 8.56% of its stock sold in a transaction valued at MNT 3.88 billion. Additionally, over the past month, a combined total of 24.8% of the company’s shares exchanged hands through three major block transactions.

  Mandal Insurance JSC also announced plans to repurchase 31,215,080 shares (equivalent to 5% of total shares outstanding), beginning this week and continuing through June 26, via both block transactions and open-market purchases.

• 🔥 Invescore NBFI JSC [MSE:INV] Emerges as Most Actively Traded Stock

  Invescore NBFI JSC emerged as the most actively traded stock on the Mongolian Stock Exchange last week, topping the list with its shares traded in block transactions a total of 10 times. This highlights strong investor interest and increased market engagement around Invescore’s equity.

🟣CMM Services

Capital Markets Mongolia (CMM) specializes in providing strategic advisory to public companies on optimizing investor relations (IR) and advising on upcoming IPOs, bond issuances, and effective participation in the capital markets with a focus on efficiency and reputation. Additionally, we undertake market research and provide financial PR services.