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3 Mar 2025

Financial Markets

LTFs set to shift into Thai ESG funds, driving small-cap businesses to adapt for continued investment inflows (Current Issue No.3564 Full Ed.)

คะแนนเฉลี่ย
  • The Ministry of Finance has proposed the conversion of LTF investment units into Thai ESG funds at the Cabinet meeting on March 3, 2025 in an effort to reduce sell-off pressure in the capital market.
  • KResearch assesses that equities and debt securities of companies, particularly small-cap firms, that do not meet ESG criteria will face the risk of sell-offs and may miss out on additional investment opportunities from this measure. Investment inflows are expected to be concentrated in large-cap companies that meet ESG standards. However, the overall capital market will remain stable as the share of actual relative value being affected is relatively small.

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Financial Markets