Widen HoSE’s fundamental industrial band to 10%: monetary affiliation

By Dat Nguyen July 15, 2021 | 08:44 GMT + 7

An investor watches inventory costs on a smartphone at a brokerage home in Ho Chi Minh Metropolis. Picture by VnExpress / Quynh Tran.

The Vietnam Monetary Consultancy Affiliation (VFCA) has proposed that the Ho Chi Minh Inventory Change (HoSE) every day buying and selling vary be widened from 7% to 10%.

The inventory market has been rising for 20 years and has grow to be extra clear to buyers with the entry into drive of securities legal guidelines earlier this 12 months, and there was a rise within the worth of transactions as buyers are geared up with extra data and higher instruments to handle their dangers. , stated the affiliation.

For these causes, the Vietnamese market must broaden its vary to match that of the world, he added. A ten p.c band is similar as that of the Hanoi Inventory Change and Chinese language inventory exchanges.

The VCFA additionally proposed that the utmost margin (the quantity an investor can borrow from a brokerage along with their main funding) be elevated from 50% to 70% to assist the market grow to be “extra dynamic.”

As the federal government needs to make use of the inventory market as a channel for elevating capital, extra laws are wanted to improve buying and selling and brokerage platforms to worldwide requirements, resembling using a bilingual consumer interface and the appliance of the Worldwide Monetary Reporting Commonplace.

The affiliation additionally proposed that the federal government regularly improve the overseas possession cap in sure sectors resembling oil (presently 35 p.c) and banking (30 p.c) to greater than 50 p.c in order that Vietnamese firms can climb greater. to worldwide requirements.

Nevertheless, voting rights ought to at all times be dominated by native shareholders in order that foreigners don’t dominate delicate sectors, the affiliation stated.

Though the nationwide financial system is a brilliant spot globally, the valuation of the Vietnamese inventory market stays low, VFCA stated. He additionally stated that the benchmark VN-Index may attain 1,500 factors by the tip of the 12 months.

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