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False rumors, concern over the capital circulate, and excessive inflationary strain have led to the latest market downtrend.
Buyers’ sentiment continues to weigh closely on the efficiency of Vietnam’s inventory market, which continues to be within the early stage of improvement.
An investor at a securities firm in Hanoi. Photograph: Pham Hung
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Minister of Finance Ho Duc Phoc has assessed in a report submitted to the Nationwide Meeting.
In keeping with Phoc, previously months, many shares’ costs have been rising with none constructive data on the enterprise efficiency of the general public companies, referring to circumstances of FLC or Louis Holdings with their respective executives having been arrested for market manipulation.
“False rumor, concern over the capital circulate, and excessive inflationary strain have led to latest market’s downtrend,” Phoc stated.
Final week, the benchmark Vn-Index declined by 14% in opposition to late 2021, which resulted in a lower of 13% in market capitalization.
Concern over the difficulty of market manipulation has additionally been echoed by the Nationwide Meeting’s Financial Committee, which requires the Authorities to take steps to stabilize and make sure the transparency of the inventory market.
Such points, nevertheless, haven’t prevented the rise of the inventory market. In 2021, the liquidity rose by 258% in opposition to the typical of 2020, whereas the variety of new securities accounts was across the cumulative determine previously 10 years.
As of current, Vietnam has over 5.2 million securities accounts, up 21% in opposition to 2021.
The ministry’s report additionally talked about rising irregularities within the company bond market amid its quick improvement tempo, with an instance being the arrest of the Chairman of Tan Hoang Minh Group for an appropriation of property by deceit.
For the previous 5 years, Vietnam’s capital market expanded by 28.5% per 12 months, with the speed going as much as 33.2% in 2021.
Whole capital mobilized out there reached over VND1,120 trillion (US$48.29 billion), or 38.7% of whole social funding.
As of the tip of the primary quarter, the market dimension reached 134.5% of the GDP, of which the inventory market made up 94%, the Authorities bond market 23%, and the company bond market 16.4%.
To advertise the wholesome improvement of the inventory and bond markets, Minister Phoc famous the ministry would revise the regulation on company bond issuance within the home and overseas markets, with the goal of tightening situations for bond issuance and strengthening the position of the State Securities Fee of Vietnam (SSC) in supervising the market operation.
Phoc anticipated the quickly formation of a specialised platform for public companies to conduct personal placement, for which all bonds are topic to registration with the Vietnam Securities Depository and the inventory trade authority.
“The final word objective is to boost the transparency of the market from the part of bond issuance to the transaction,” he added.
Hanoi Instances
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