Mongolian capital markets have developed in phases since the 1990s democratic transition: Phase I saw the establishment of the MSE in 1991 and privatization of SOEs, but a lack of regulations and transparency led to low liquidity. Phase II from 2010-2013 saw increased foreign investment and reforms like a new trading platform. However, Phase III from 2014-2015 saw declining FDI and political interference negatively impact markets. Now in Phase IV, reforms and recent IPOs suggest new opportunities, but challenges around regulations, skills, and awareness remain. Future priorities include boosting local institutional investors, dual-listings, and using markets for further SOE privatization.