HANOI: The State Securities Commission (SSC) will implement a separate corporate bond trading system from July this year to develop a transparent secondary market and increase liquidity for corporate bonds.
This was announced by Ta Thanh Binh, director of the Market Development Department under the SSC, at a seminar on “Drawing Capital Flows Into The Stock Market”, organised by the Securities Investment Newspaper.
When this market is operated, securities companies must ensure that all investors participating in bond trading are professional investors, Binh said.
The SSC is speeding up the restructuring of securities companies, continuing to change products in the market in a new direction, meaning that the Ho Chi Minh City Stock Exchange will be specialised for stock trading and Hanoi Stock Exchange will be used for derivative products and bond trading, according to Binh.
“The SSC is actively amending a decree that’s adding issues directly related to the bond offering in the direction of simplifying administrative procedures, so that businessmen can access bond trading easily and make documents conveniently,” she said.
Over the past three years, Vietnam’s stock market has experienced many ups and downs. However, it still attracts a lot of people’s attention.
The number of investors participating in the market has reached the target of over 5% of the population, which exceeds the three-year plan.
There was a trading session that even saw liquidity up to more than 30 trillion dong (RM6bil), helping many businesses mobilise medium and long-term capital.
Since the second quarter of 2022, Vietnam’s stock market has entered a period of decline in both scores and liquidity, making it more difficult to raise capital through the market.
“The fluctuations and unpredictable variables in the market are a great experience for investors and also for the management agency,” said Binh.
The SSC has developed a strategy to develop the stock market towards 2030 and is waiting for the Prime Minister’s approval.
One of the important ideas of this strategy is the concentration on sustainable development, not focusing too much on growth in number and scale, according to Binh.
In order for the stock market to develop, it is necessary that listed companies and public companies operate effectively.
Therefore, companies need to improve the governance quality, gradually adopting environment, society and governance principles to create a foundation for businesses to access capital from the international market.
One of the reasons why the derivative market fluctuates so much was because of the lack of new products.
In the near future, the SSC would try to immediately launch other products on the derivatives market such as VN100 index futures, Binh said.
The SSC would also soon put into operation the new trading system KRX, which would not only support the implementation of new products but also assist the market regulators in monitoring, based on information technology application. — Viet Nam News/ANN
