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Happy Monday! This summer, UB is leveling up its hospitality game! The city is rolling out comfy 45-seater buses dedicated to picking up tourists, zooming through the first lane like VIPs. It’s all part of a bigger plan to cut down traffic stress, streamline arrivals, and impress visitors from the moment they land. Next stop? A smoother, smarter UB travel experience. 🚌

Today’s highlights in 3 sentences…

• 🇷🇺🇲🇳 Joint Monopoly on the Horizon

• ⬆️ New Election Rules for a Fairer Race

• 📉 Investment Funds Face Major Discounts Amid Sluggish Growth

Ready to Dive in?

MARKET

MMC: Moody’s Ratings upgrades Mongolian Mining Corporation’s (MMC) corporate family rating (CFR) and senior unsecured rating from B3 to B2 with a stable outlook. 

MNG: Russia’s Rosneft and Mongolia’s Erchis Oil to establish a joint company to operate and manage Chinggis Khaan International Airport.

BANKING: The banking sector's net external assets decrease by 46% year-on-year, reaching $1.5 billion in March.

⬆️ New Rules for a Fair Election

Parliament holds its first discussion on draft amendments to the Law on Parliamentary Elections after the Constitutional Court issues its third official opinion, declaring parts of the current law unconstitutional.

• ⚖️ Why it matters: The amendments aim to ensure fair competition between sitting members of parliament and new candidates by removing privileges that favor incumbents during the pre-campaign period.

📄 The Draft Law

The draft law responds directly to the Constitutional Court’s ruling by targeting 2 specific provisions in the current election law. It repeals Subsection 41.9, which previously allowed members of parliament to distribute work reports and meet voters before the campaign period, giving them an unfair advantage. The draft also revises Subsection 44.6 to let any individual, not just MPs, publicly present their work or achievements before nominations open. This change ensures a fairer, more equal playing field for all candidates.

• 💻 Between the lines: The law keeps the ban on distributing materials or items that may influence voters, starting from the election year to election day. But it excludes digital and electronic reports, which may spark further debate.

• 📅 What’s next: Parliament approves the draft without objections during the first round. Lawmakers plan further readings and revisions in future sessions.

🌐 Zoom out: In a parallel session, MPs discuss Parliament’s proposal to the Constitutional Court, requesting a review on whether a law passed by Parliament breaches the Constitution.

🗣️ What they’re saying:

• MP B. Enkhbayar and MP D. Munkhbaatar call the move a democratic milestone.

• MP Kh.Temuujin stresses that only the Constitutional Court can rule on the constitutionality of laws. “Parliament is the supreme organ of state power, ordinary courts have no right to interfere with the legislative process.”

Final thought... The proposed amendments to the Law on Parliamentary Elections have the potential to drive real reform. However, their effectiveness will depend on full implementation. For example, the exclusion of digital materials from the voter influence ban could raise questions about fairness in the digital age. Will this be a turning point for a more equitable electoral system, or just another favor for pro-politicians?

⭐ Selected for you

ECONOMY & BUSINESS

• Erenhot, the Largest Land Port on the China-Mongolia Border, Handled the 1,000th China-Europe Freight Train. (BastillePost) 

• Trade Turnover in Mongolia Decreases 8.3 Percent in Q1. (AzadNewsAgency)

• Mongolia’s First Embraer E195-E2. (AeroSpaceGlobal)

• Over 2.3 Million Mongolians — 65.7% of the Population — Hold Loans from NBFI. (GoGo)

• Mongolia's Combed Cashmere Exports Decrease by 55 pct in Q1. (News.Az)

POLITICS

• China Considers Power of Siberia 2 Route Bypassing Mongolia. (EnergyIntel)

• The World Bank Supports Environmental Initiatives. (UBPost)

CULTURE & LIFESTYLE

• Registration for the First "Nuudel-999" Chess Tournament Begins. (Ulaanbaatar)

• ULAN BATOR – Mass Food Poisoning Incident Affects Miners. (FoodPoisoningNews)

• Watch Fearsome Raptors Soar At Mongolia’s Golden Eagle Festival. (Forbes)

• Jaadugar: A Witch in Mongolia Anime Announced from Science SARU. (CrunchyRoll)

Investment Funds Struggle: Major Discounts 🆚 Growth

6 years ago, the National Privatization Fund (XOC) was established, followed by the Mandal Future Growth Fund (MFG) in 2021, with the slogan “Let’s be the owners of banks.” So, where do we stand today?

🤫📈 Quiet, but Growing

When these investment funds were first introduced, they generated significant buzz in the stock market. $MFG attracts ₮50 billion, while $XOC garners ₮5 billion. Although both funds remain relatively quiet, their 2024 financial statements are now published on the Mongolian Stock Exchange (MSE). Total assets for both funds grow by an average of 11.9%. However, the National Privatization Fund's asset growth rate lags significantly behind that of $MFG, at 2.8 times lower.

• 📊 $MFG +47.1%: The Mandal Future Growth Fund reports a 47.1% year-on-year increase in net profit, reaching ₮8.4 billion. This surge is driven by a 1.9-fold increase in interest income and a 2.1-fold rise in dividend income. As a result, earnings per share rise to ₮167.8.

• 😮‍💨 $XOC From Loss to Profit: In contrast, while the National Privatization Fund incurs a loss of ₮793 million in 2023, it turns a profit of ₮379.6 million in 2024. The increase in dividend income and gains from investment sales plays a key role in this turnaround.

🛣️ Hold On

However, the outlook is less favorable regarding unit prices. While investment fund units are traded on the exchange, their current net asset value (NAV) is also calculated. Ideally, these 2 figures align closely, but a significant discrepancy exists. As of April 11, both $XOC and $MFG trade at over a 50% discount to their NAV. $MFG traded at a more modest 31% discount 2 years ago.

⚠️ Reason for the Cold Shoulder

This large discount suggests that investors lack confidence in the funds’ prospects or are skeptical of their management and strategy. Additionally, issues with portfolio valuation and liquidity raise concerns.

Finally, unless these funds improve transparency and align with their original investment strategies, their unit prices are likely to remain significantly below their intrinsic value and NAV, with limited potential for recovery.

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Publisher: Ts.Ankhbayar
Writer: M.Khulan
Graphics by: Ts.Tselmeg

Disclaimer: The information Inside Mongolia provides is for educational and informational purposes only. It is not intended to be or constitute financial advice, trading advice, or any other advice. The decision whether to consider the information we provide is solely our readers' independent decision.