Orbán’s system conquered the Hungarian stock exchange!
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Here is the economic supermajority of PM Orbán’s system in Hungary. The supermajority of the Hungarian companies present on the Budapest Stock Exchange is in Orbán-close oligarchs’ and businessmen’s ownership.
We wrote HERE about Thomas Peterfyy, the richest Hungarian in the world, who said in an interview with Válasz Online, an independent Hungarian media outlet, that without a free stock market, we cannot imagine a free society. The Hungarian dollar billionaire living in the USA and revolutionising stock exchange trade added that that is why all Socialist regimes shut bourses in the first place. He believes stock exchanges are the culmination of free markets in a free society.
In 2015, the Hungarian National Bank bought the Budapest Stock Exchange (BÉT) from its Austrian owner. They promised to make it the most important area for Hungarian companies to acquire capital. They could not. Then the BÉT had 45 companies, now it has 62. But the activity/revenue level of 25 of them is below the required. Therefore, we should calculate with only 37 stock exchange firms.
That shows Hungarian companies would not like to get capital on the stock exchange. Instead, they seek government ties and would like to utilise state bond and loan options because that was not too risky. Hungarian companies–despite being among the country’s wealthiest ones–are not present on BÉT.
Out of the 37 active and strong Hungarian companies present at BÉT, 25 are in the ownership of Orbán-close oligarchs. That means the Orbán system (the System of National Cooperation – NER) won supermajority even on the Budapest Stock Exchange. But why did they do so?
Here are the names
Válasz Online suggests that being present on the bourse is prestigous in the economy. People believe those active and successful on the bourse can be trusted. Furthermore, in the case of a future government change, it is harder to fine companies present on the BÉT since they have many small investors. As a result, the oligarchs can use the small investors for protection.
It is KNOWN as a Fact over a decade this has been open knowledge, the dominance of the Orban – Oligarch “inner sanctum” stock exchange listings.
The minor number of companies listed on the Hungarian Stock Exchange is smaller than a mustard seed, in comparison to “other” country’s.
Is it a carpel with the dominance of the oligarch’s ?
Certainly it is when you look at the dictionary definition of the word cartel, then place its meaning, into the listed names of companies on the Hungarian Stock Exchange, and the Major share-holders of these companies.
Fascinating read is the History of the Hungarian Stock Exchange which in its glorious days, its halcyon days, the size of what was its “open market” trading floor trading facilities and all the other massive in size associated back then of a Stock Exchange functionality.
The gargantuan in size, building, opened in 1905, still stands to-day, in Liberty Square.
Stock exchange listing means ‘public’ company with transparency of shareholdings, financial reporting etc. versus the new habit of large companies becoming private via large shareholders including the state; back to socialist times?
However, there is also ‘moral hazard’ if monopolies, i.e. ownership becomes solely responsible for any issues that arise, not the case in public companies where it’s more dispersed.
Confirmation why there is no CAPITAL in Hungary.
How could there be, with the knowledge of the monopolies that exist, through the companies listed on the Hungarian Stock Exchange that is dominated by the Orban / Oligarch individuals.