“The capital market is going through an increasingly smaller vicious circle”

The capital market is a fundamental cog in the functioning of the global economy; However, at the local level, it has recently had certain liquidity difficulties. Thinking about this, María José Ramírez, president of LarrainVial Colombia, told LR the possible path forward to achieve market evolution.

How is the capital market in the country?

The Colombian capital market, unfortunately, in recent years, instead of growing and having an increasingly larger participation, for example, as a percentage of GDP, which is seen in international economies, comes in a stalemateand it’s getting smaller, so we really are like in a vicious circle of growth.

What are the main challenges and opportunities?

We believe that the greatest opportunity is the integration of the markets of Chile, Peru and Colombia, which became part of Nuamsince it generates a larger scale.

To the extent that there are more players and more investors, that helps create greater liquidity; However, for now what the government has done, The thing is that we are not going to enter and that is why I think that in any case we have to continue working, this is not a one-size-fits-all thing that is going to solve and create a more liquid and larger market.but it is a matter of the sum of many efforts.

What do you think of the superfinancial position regarding the merger?

There is a difference in opinions, very respectful, since the main argument of the Superfinanciera is that savings are going to go away, what we believe is that the opposite will happen, To the extent that you are competing, you are also in a larger market, where there are more investors and more possibilities that someone will like the investment.

Nowadays people can invest outside, but what is achieved is being in a larger, more liquid and deeper market, which means there are more eyes looking at Colombian investment options.

How are they in terms of profits so far this year?

I can’t say the exact figure, but this year we are doing very well, we are in a record year in profits. We have been in Colombia for 10 years, we were the first commission company that, instead of buying a license that already existed, we started from scratch.

We are more of a boutique commission company, today we are the third most important player in the stock market, we participate in fixed income, We manage investment funds and there we have been growing the assets under management significantly and diversifying the source of income, increasingly consolidated in Colombia.

Do you have any new releases or new alliances?

We are the administrators of a stock fund whose manager is Ashmore, one of the largest funds in Colombia, and we raised capital. Two weeks from now the size will be above $1.5 billion.

In what ways can⁤ regional integration⁢ with Chile and Peru⁣ specifically address the liquidity challenges in Colombia,‍ and what alternative strategies might be pursued ⁢to enhance market resilience?

As the capital market in Colombia has recently faced liquidity difficulties, we would like to explore the possible path forward to achieve market evolution. Our first question is related to the current state of the capital market in the country. Can you provide your insight on this issue, María José?

Following⁢ that, we’d like to delve into the main challenges and opportunities that the ‍Colombian capital market is currently facing. Do you agree with the notion that the ​integration of markets​ with Chile and Peru holds strong potential for growth? What other measures​ could be taken to boost ⁢liquidity and market expansion?

Additionally, we understand that there are mixed opinions regarding the ​role of the Superfinanciera on the proposed merger. Could you ⁣share the ​viewpoint of LarrainVial⁢ Colombia on this‌ matter? Do you think the merger could potentially lead to ⁤increased savings inflows or outflows?

Moving on to the performance of LarrainVial Colombia, could you share with us the financial metrics of the company so far this year? What are ​the major factors contributing to the record ⁣profits,⁢ and how has the company diversified its income sources?

we are aware that LarrainVial Colombia recently became the administrator of a large ⁤stock fund managed by Ashmore. Could you tell us more about this alliance and its potential​ impact on the Colombian capital market?

We appreciate your time and insights on these crucial matters that are shaping the future of ⁣the Colombian‌ capital market. We ⁤look forward to your responses.