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CAMBODIA SECURITIES EXCHANGE (CSX)
♦ ASIAN: Asian Stocks Rise Amid Optimism on China Stimulus Outlook BUSINESS NEWS
CAMBODIA: Forum breaks ice, yet more time needed THAILAND: Thailand's Board of Investors looks at the country's investment policy ♦ CHINA: Chinese telecom faces stiff fines for its deals with Iran ECONOMIC NEWS
CAMBODIA: Men Sarun to export canned noodles to the US and ASEAN ♦ UNITED STATE: US govt eases sanctions SECURITIES NEWS
Price (in KHM) based on the 2nd closing session. ASIAN: Asian Stocks Rise Amid Optimism on China Stimulus Outlook
Asian stocks rose after China’s Premier Wen Jiabao said the government wil increase measures to support growth in the world’s second-largest economy. Miner BHP Bil iton Ltd., which gets more than a quarter of its sales from China, rose 1.2% in Sydney. Coal producer Whitehaven Coal Ltd. (WHC) soared 15% after Australian mining magnate Nathan Tinkler offered to buy out the rest of the company. Daekyung Machinery & Engineering Co. fel 8.3% in Seoul after a shipmaker dropped its bid for the chemical machinery maker. ZTE Corp., a Chinese telecommunications equipment maker, slumped 16% after saying its first-half profit may plunge 80%. The MSCI Asia Pacific Excluding Japan Index rose 0.3% to 403.89 as of 9:59 a.m. in Hong Kong, with about three stocks gaining for every two that declined. Japan’s equity markets are closed today for a public holiday. “There remains significant capacity for China to stimulate further,” said George Boubouras, Melbourne-based head of investment strategy at UBS AG’s Australian wealth- management unit. The Swiss bank has about $1.5 tril ion in assets under management. “This is not only from a monetary perspective, which includes further rate cuts or lowering the reserve required ratio again, but also the ability for additional targeted fiscal BUSINESS NEWS
CAMBODIA: Forum breaks ice, yet more time needed
Long time foreign members of the Cambodian business community said the US-ASEAN Business Forum, held on Friday in Siem Reap, was largely successful in setting the country in the sights of America businesses, but multinational corporations wil need more time in the Kingdom before nailing down hard deals. The forum, which put companies such as Boeing, FedEx and Procter & Gamble into the same room with some of Cambodia's biggest firms, was the largest meeting between the two countries' business communities. General Electric signed a US$3 mil ion biomass power deal with local firm Soma Group. For companies with little experience in the country, more trips and meetings would be necessary to square away partnerships and deals with Cambodian companies. One of the main functions of the forum was to serve as a showcase for successful international- domestic co-operation in the country. (Phnom Penh Post) The securities firm you can trust │ Page 1 of 3
See important disclosures at the end of this report THAILAND: Thailand's Board of Investors looks at the country's investment
CSX INDEXES
The Board of Investment (Bol) is reviewing the country's investment promotion policy in which zone-based investment criteria wil be changed to an industry preference base. Industry Minister MR Pongsvas Svasti said cleaner and environmental y friendly industries wil be the focus of the new set of investment privileges. Under the new strategies, industries such as renewable energy and hi-tech manufacturing wil be granted the highest investment incentives. At present, Bol privileges differ among zones, with industries located in Greater Bangkok receiving the fewest incentives. The review is expected to be completed this year. (Phnom Penh Post) CHINA: Chinese telecom faces stiff fines for its deals with Iran

ZTE Corp, the world's fifth biggest telecommunications equipment maker, could face steep
fines and restrictions on its US operations if it is found to have il egal y sold US computer
products to Iran. The FBI has opened a criminal investigation into the Chinese company's
sale of banned equipment, according to an FBI affidavit. Reuters reported in March that
ZTE had a US$120 mil ion contract in 2010 with Iran's largest telecom firm, including
supplying US computer equipment. Reuters later reported that ZTE had agreed last year to
ship mil ions of dol ars worth of additional embargoed US computer equipment to a unit
of the consortium that controls the Iranian telecom. The law authorizing US sanctions
against Iran al ows for a civil penalty up to twice the value of a transaction, which in ZTE's
case would translate to $240 million or more. (Phnom Penh Post)

ECONOMIC NEWS
CAMBODIA: Men Sarun to export canned noodles to the US and ASEAN
The producer of Mee Yeung, instant noodles is set to expand its business by investing
US$1 mil ion in equipment to produce noodles for export. Deputy General Director of Men
Sarun, Choun Kol, Cambodia's only company to produce instant noodles, said the company
wil produce canned noodles in addition to its packaged noodles. The new production
targets will open markets in the US, ASEAN and other Asian states such as Malaysia and
Indonesia. About 10 to 15% or approximately 30,000 to 45,000 cans of noodles produced
every 10 hours wil be for the Cambodian market. Canned noodles wil be about 300 riel
more expensive than packaged noodles and canned noodles are much needed in the US.
(Phnom Penh Post)
UNITED STATE: US govt eases sanctions

Last week the US government eased some of the financial and investment sanctions on
Myanmar to allow the first new US investment in the country in nearly 15 years, and to
broadly authorize the exportation of financial services to Myanmar. The US State
Department website says its change in sanctions policy is aimed at supporting democratic
reform and reconciliation efforts while aiding in development that provides benefits to al
of Myanmar's people. The website says the US believes that the participation of American
businesses in the country's economy wil set a model for responsible investment as wel as
encourage further change and promote economic development. The website goes on to
say that the US "remains concerned about the protection of human rights, corruption, and
the role of the military in the Burmese economy". The US is not authorizing new
investment with the Ministry of Defense, state or non-state armed groups, or entities
owned by them. US persons are still prohibited from dealing with blocked persons,
including both listed Special y Designated Nationals (SDNs) as wel as any entities 50% or
more owned by an SDN. Individuals or companies undertaking new investment with the
Myanmar Oil and Gas Enterprise must notify the State Department within 60 days of their
new investment. (Phnom Penh Post)
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