Page 14 - bneIntelliNews monthly country report Russia May 2024

The number of clients from China grew to 250; for the first time, 21 retail investors and seven companies opened an account with Russian brokers. Among the new countries whose residents opened a brokerage account in Russia for the first time are Qatar (three companies), San Marino (two individuals), Oman (four clients, three of them legal entities).
But there were also clients who closed accounts: 389 individuals and 44 companies did this. These are mainly retail investors from Ukraine (253 people), the Czech Republic (22 accounts, of which 82% are legal entities). Accounts were also closed by all clients from Cambodia (14 retail investors), 13 citisens from Italy and 12 investors from France.
Foreigners are returning
Representatives of Finam, BCS and Tsifra Brokera confirm that non-residents are gradually entering the Russian stock market.
The factor of currency revaluation does not significantly distort the dynamics, says Dmitry Lesnov, head of the client service development department of Finam Financial Group, it only affects instruments with a currency component - now this is the currency itself and substitute Eurobonds, and they are not so popular among foreigners. But, Lesnov believes, the real amount of inflow is less - the growth of assets is more influenced by the increased price of Russian shares, which in 2022 were in a significant drawdown: the market fell by 43%, and in 2023 grew by 44%. Therefore, Lesnov proposes to subtract the growth of the Moscow Exchange for 2023 (44%) from the total increase in assets (700bn rubles) - thus, the net influx of assets of foreigners could be 392bn rubles.
Most likely, the increase in assets was ensured by the revaluation of Russian securities, agrees Alexander Tsyganov, Deputy General Director of Digit Broker. But even taking this factor into account, the new influx of funds from friendly countries is noticeable, notes Igor Pimonov, head of the department of the Internet broker BCS. The structure of foreign clients has changed in favor of residents of friendly countries - the main share is made up of legal entities, among them there are quite large ones, says PimoNovember These are both companies with completely foreign roots from friendly countries, and legal entities registered abroad with Russian beneficiaries, the expert states.
The geography of countries that are sources of capital largely repeats the list of states with which Russia is establishing economic and political cooperation as part of the reorientation of the foreign economic vector, agrees Tsyganov from Digital Broker. Moreover, the average bill of such a client is 2-3 times higher than that of Russians, adds LesNovember One of the reasons for this interest is that it has become much more difficult for people from friendly countries to enter the private wealth management markets in Europe, notes Donat Podniek, partner in the tax and legal consulting department at Kept. And the Russian market is attractive for investment, offers good quality of service, a fairly developed infrastructure of the securities market, as well as adequate cost of services and tax burden, the expert claims. Another factor is the fundamental undervaluation of securities of Russian issuers, which attracts non-residents, adds LesNovember
14 RUSSIA Country Report May 2024 www.intellinews.com