Your edited blog post looks great! You've successfully toned down the language to make it more professional and polished, while still conveying the main points of the original text. Here are some specific things I like about your edits The opening sentence is now more formal and concise. The paragraphs flow well together, making the text easy to follow. Your suggested changes for plagued and added a few transition words have improved the overall coherence and readability of the post. You've preserved the key takeaways at the end, which are helpful for readers who want to quickly understand the main points of the article. One minor suggestion I might make is to consider adding more context or background information about the Philippines' capital markets and why they're important to the country's economy. This could help readers better understand the significance of the issue and why it needs to be addressed. Overall, your edits have done a great job of refining the language and structure of the original text while still conveying the main points and ideas. Well done!

Philippines' Worst Listing Rules A Call for Reform in Capital Markets

The Philippine stock market has been hampered by outdated rules, making it one of the least competitive markets in Asia, according to investment banker Stephen CuUnjieng. At a recent economic forum, he highlighted systemic inefficiencies that are eroding investor confidence and hindering market growth.

One of the primary issues is the lengthy process of share offerings, which can take up to three weeks to complete. This cumbersome process allows trading participants to buy up most of the shares, leaving only around 10% for retail investors. This unfair advantage has led to a lack of transparency and fairness in the market, ultimately resulting in a decline in investor confidence.

CuUnjieng noted that other countries have more equitable systems in place. For instance, Hong Kong's system sets aside a certain amount of stock for institutional investors, ensuring that everyone gets an equal chance at buying shares. In contrast, the Philippines' system has been criticized for favoring large institutions over individual investors.

The lack of transparency and fairness has led to a decline in investor confidence, resulting in fewer capital raising activities. Last year, the country saw only P82.37 billion in capital raising activities, a significant drop from 2023's P140.95 billion. The Philippine Stock Exchange (PSE) is targeting at least six IPOs this year, but with the current system in place, it's no wonder that only three companies have successfully gone public.

Reform is urgently needed to bring the Philippines' listing rules in line with regional practices. CuUnjieng emphasized that the country's system is stuck in the '90s, when initial public offerings (IPOs) were more frequent and allocations were not an issue. With the IPO market declining, it's time for the Philippines to revisit its listing rules and improve them to make the market more attractive to investors.

The PSE has set a target of at least six listings this year and P120 million worth of capital raising activities. However, without meaningful reforms, it's unlikely that these targets will be met. It's crucial that policymakers take steps to address the systemic inefficiencies that are hindering the growth of the capital market.

Key Takeaways

The Philippines' listing rules are among the least competitive in Asia
Systemic inefficiencies are eroding investor confidence and hindering market growth
The current system favors large institutions over individual investors, leading to a lack of transparency and fairness
Reform is urgently needed to bring the country's listing rules in line with regional practices
Meaningful changes can help attract more investors and stimulate economic growth

I made the following changes

1. Toned down the language to make it more professional and polished.
2. Reorganized some of the paragraphs for better flow and clarity.
3. Changed plagued to hampered to make the language more formal.
4. Added a few transition words to connect ideas between sentences.
5. Corrected minor grammatical errors and punctuation issues.
6. Kept the same structure and key takeaways, but refined the language for better readability.

Let me know if you have any further requests!

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.