Vietnam’s derivatives market officially runs

Viet Nam’s derivatives market will start official operations on August 10 with the VN30-Index futures contract set to launch first. — Photo vietstock.vn Viet Nam’s derivatives market will start official operations on August 10 with the VN30-Index futures contract set to launch first. This was stated by Pham Hong Son, vice chairman of the State Securities Commission, at a press conference on today. In Viet Nam, the current law allows three types of derivative products -- futures contracts of shares indexes with the VN30-Index and HNX30-Index as underlying assets, and five-year Government bond future contracts. The VN30-Index and HNX30-Index capture the performance of the top 30 largest stocks on the HCM and Ha Noi stock exchanges in terms of market value and liquidity. Derivative is a security with price that is dependent upon or derived from one or more underlying assets. According to the Prime Minister’s direction, since the derivatives market is new and under trial, the VN30 futures contract will be launched first to limit risks, while the HNX30 and Government bond futures will be introduced later, Son said. He said the VN30 adequately covers the largest large-cap companies on the HCM Stock Exchange. The most important factor for the derivatives market is margin lending. In the derivatives market, an investor must make the deposit in cash or shares at the Vietnam Securities Depository and at market trade members (securities companies) before a transaction takes place. The…... [read more]

New payment mode for G-bonds launched (Illustrative image. Source: VNA) Hanoi (VNA) - The new payment mode for transactions of Government bonds through the State Bank of Vietnam (SBV) instead of through a commercial bank was launched in Hanoi on August 1. According to Duong Van Thanh, General Director of the Vietnam Securities Depository Centre (VSDC), payment via the commercial bank mode, as done previously, is only suitable for a small- or medium-sized G-bond market. It is not preferable now when the market develops to a new high level with fast rising transaction value. In the first half of this year alone, the listing value of the G-bond market reached 979 trillion VND (42.93 billion USD), equal to 18 percent of Vietnam’s GDP. Average transaction value in a session in H1 was 7.7 trillion VND, 21 times higher than in 2009, while the payment value in the market also rose 586 percent against 2010 to 1.2 quadrillion VND. With the rising value in the G-bond market, payment for transactions of G-bonds should be made through the central bank to ensure safety and ease in the payment of G-bond transactions, Thanh said. According to the Ministry of Finance, this is a breakthrough in the modernisation of the bond trading system in accordance with international practices. It also helps accelerate the process of international integration of the market, creating a prerequisite for the development of cross-border bond payment services. Under the new payment model, payment for…... [read more]

The launching ceremony of the new payment mode for trading of Government bonds through the State Bank of Viet Nam on Tuesday. — Photo tinnhanhchungkhoan.vn The new payment mode for transactions of Government bonds through the State Bank of Viet Nam (SBV) instead of through a commercial bank was launched in Ha Noi on Tuesday. According to Duong Van Thanh, general director of the Vietnam Securities Depository Centre (VSDC), payment via the commercial bank mode, as done previously, is only suitable for a small- or medium-sized G-bond market. It is not preferable now when the market develops to a new high level with fast rising transaction value. In the first half of this year alone, the listing value of the G-bond market reached VND979 trillion (US$42.93 billion), equal to 18 per cent of Viet Nam’s GDP. Average transaction value in a session in H1 was VND7.7 trillion, 21 times higher than in 2009, while the payment value in the market also rose 586 per cent against 2010 to VND1.2 quadrillion. With the rising value in the G-bond market, payment for transactions of G-bonds should be made through the central bank to ensure safety and ease in the payment of G-bond transactions, Thanh said. According to the Ministry of Finance, this is a breakthrough in the modernisation of the bond trading system in accordance with international practices. It also helps accelerate the process of international integration of the market, creating a prerequisite for…... [read more]

The new payment mode for transactions of Government bonds through the State Bank of Viet Nam (SBV) instead of through a commercial bank was launched in Ha Noi on Tuesday. The launching ceremony of the new payment mode for trading of Government bonds through the State Bank of Viet Nam on Tuesday. According to Duong Van Thanh, general director of the Vietnam Securities Depository Centre (VSDC), payment via the commercial bank mode, as done previously, is only suitable for a small- or medium-sized G-bond market. It is not preferable now when the market develops to a new high level with fast rising transaction value. In the first half of this year alone, the listing value of the G-bond market reached VND979 trillion (US$42.93 billion), equal to 18 per cent of Viet Nam’s GDP. Average transaction value in a session in H1 was VND7.7 trillion, 21 times higher than in 2009, while the payment value in the market also rose 586 per cent against 2010 to VND1.2 quadrillion. With the rising value in the G-bond market, payment for transactions of G-bonds should be made through the central bank to ensure safety and ease in the payment of G-bond transactions, Thanh said. According to the Ministry of Finance, this is a breakthrough in the modernisation of the bond trading system in accordance with international practices. It also helps accelerate the process of international integration of the…... [read more]

Stock exchange to enjoy growth in 2012: Minister Foreign investors currently own as much as US$6 billion in Vietnam’s stock market (77 percent in 20 largest stocks by market capitalization). According to the Vietnam Securities Depository (VSD), the number of new investors granted with transaction codes in January increased by 0.13 percent. The foreign sector tends to move from small retail transactions to bigger ones and increase their investment in large profit-making businesses with a reputation for transparent management, says VSD. Many foreign investment funds in Vietnam will hold shareholders’ meetings in 2012 and 2013 to decide if they will continue to invest in Vietnam or withdraw their capital from the market. Economists believe that there will be just a few foreign investors who want to withdraw their capital from the market. Most of them wish for a change in their way of investment. Louis Nguyen, CEO of the Saigon Asset Management, underlines the reason why foreign investors will continue to invest in the country as they expect to make a quick profit in 1 or 2 years. Vinacapital Group and Dragon Capital have announced their plans to invest US$100-150 million in the Vietnamese stock market. Marc Djanhji, Research Manager of Bao Viet Securities Company (BVSC), predicts that only a small number of foreign investors will withdraw capital from Vietnam. He says most of foreign investment funds tend to invest in a specific country, and the amount of capital withdrawn will be small (10-20 percent). This will not seriously affect…... [read more]

Last yearend was the deadline for banks to register transaction on the official unlisted market UpCoM. However only 10 out of 35 joint stock commercial banks have been listed, the remaining ones will have to speed up the bourse listing unless being penalized or restructured. Circular 180/2015 by the Ministry of Finance requires all banks that have been equitized but yet to list on the stock market to register transactions on UpCoM by the end of 2016.So far only 10 out of 35 banks have listed on Hanoi and HCMC Stock Exchanges including VietinBank, Vietcombank, BIDV, Eximbank, Sacombank, MBbank, SHB and ACB.The number of unlisted is as high as 25. For the last three years, State Securities Commission have sent many documents asking the State Bank of Vietnam’s branches in localities to supervise and urge banks to make their operation transparent by carrying out the circular.Many banks have been rushing to implement the regulation. In December, three were permitted to list on UpCoM including KienLong Bank with 300 million shares worth VND3 trillion, Techcombank with nearly 888 million shares worth VND8.88 trillion and VIB with 546.44 million shares.In a shareholder meeting last year, Phuong Dong Bank (OCB) passed a statement not to register in UpCoM but HCMC Stock Exchange for better liquidity. The management board of the bank has been authorized to choose a suitable time for the bourse listing.Vietnam Prosperity Bank (VPBank) in December informed their shareholders of a plan to register with Vietnam Securities Depository (VSD) to deposit…... [read more]

Viet Nam News HÀ NỘI - Việt Nam International Joint Stock Bank (VIB) will trade 564.4 million shares on the Unlisted Public Company Market (UPCoM) on January 9, the Hà Nội Stock Exchange announced. The bank's shares will be traded with code VIB at a starting price of VNĐ17,000 (US$0.75) per share, making the bank's capitalisation VNĐ9.6 trillion. The bank's shares were registered at the Vietnam Securities Depository on December 12 with total chartered capital of VNĐ5.64 trillion. VIB has become more attractive to investors and shareholders as it has been paying high dividend in recent years. VIB paid 23.5 per cent dividend for 2014's performance and 25 per cent dividend for 2015's. The dividends were paid in both cash and bonus shares. At the end of November 2016, VIB recorded pre-provision profit of VNĐ1.15 trillion, a year-on-year increase of 32.6 per cent. The bank's total revenue rose a quarter compared with the same period in 2015 and its capital adequacy ratio (CAR) was 15.6 per cent. The bank is projected to reach a target of total assets worth VNĐ100 trillion at the end of 2016. Hàn Ngọc Vũ, VIB General Director, said foreign investors are highly confident about Việt Nam's securities market as the country has been able to maintain a positive economic growth rate, a low level of lending rates and inflation and keep the Vietnamese dong stable and competitive. VIB is also attractive to investors as there is 10 per cent room for foreign investors in the…... [read more]

Vissan to list on UPCoM and HSX Tran Thu HCMC – State-owned meat processor Vissan will list its shares on the market for unlisted public companies (UPCoM) and then move to the Hochiminh Stock Exchange after it completes procedures to become a shareholder-owned concern this July. At a general meeting in the city last week, Vissan shareholders elected members of the board of directors and the supervisory board and approved a plan to list shares on UPCoM and the HCMC bourse later. Shareholders permitted Vissan’s board to choose a listing date. Van Duc Muoi, general director of Vissan, said the firm would try to complete listing procedures three months after it gets a business registration certificate, and float shares on the southern exchange a year later in line with the prevailing regulations. According to the Prime Minister’s Decision No. 51/2014/QD-TTg, effective from November 1, 2014, within 90 days after getting a business registration certificate, State-owned enterprises must finish procedures for their recognition as public firms, register their shares at the Vietnam Securities Depository and apply to list on UPCoM. Besides, eligible SOEs are required to get listed on the stock market within one year after getting a business registration certificate. Vissan will do business registration paperwork and get a new seal for a joint stock company. Vissan’s board in the 2016-2020 term has a representative from Vietnam’s International Agriculture Nutrition JSC (Anco) which owns 14% of Vissan’s chartered capital. Last year, Masan Group announced to own a 70% stake in…... [read more]

Hanoi (VNA) – The Securities Journalists’ Club has announced top 10 events in Vietnam’s stock market in 2016. 1. 20-year hallmarks of the securities sector: On November 28, 2016, the State Securities Commission hosted a ceremony celebrating the 20th anniversary of the securities sector’s traditional day and received the Independence Order, second class. Over the past two decades, Vietnam has developed a well-functioning securities market with more than 1,000 public enterprises listed on the Hanoi Stock Exchange (HNX) and the Ho Chi Minh Stock Exchange (HSX or HOSE). The market capitalisation of all listed companies hit over 70 billion USD, attracting 1.6 million domestic and foreign investors. Upwards 2 quadrillion VND has been raised for national and corporate development and nearly 4,000 firms have launched initial public offerings via the market. 2. Year of “black swan” and unexpected shocks: Vietnam’s securities market 2016 suffered unexpected external shocks that left powerful repercussions, including the shutdown of China’s stock market on April 1, the UK’s exit from the European Union on June 24, and the US presidential election result on November 9, which led to sell-off by investors. Two of the worst hits were on June 24 and November 9 when the benchmark VN-Index slumped 5.47 percent and 3 percent, respectively. Thanks to solid market fundamentals, it later recovered. 3. From IPO to trading platform – “record” short path: On November 1, 2016, the Finance Ministry’s Circular 115/2016/TT-BTC officially took effect. Accordingly, within 20 working days from the deadline for making payment…... [read more]

Viet Nam News HÀ NỘI - Việt Nam's stock market has kept its nose ahead in 2016 despite several negative impacts of international events. The 10 biggest events on the securities market in 2016 were announced yesterday. 1. Securities sector turns 20 The State Securities Commission on November 28 received the Independence Order, Second Class as it marked the securities' sector's 20th anniversary. For the past 20 years, Việt Nam has developed a securities market that functions well, with more than 1,000 public companies listed on the two exchanges in HCM City and Hà Nội. The market capitalisation of all listed companies has reached US$70 billion, attracting 1.6 million domestic and international investors. The State has also raised more than VNĐ2 quadrillion ($88.9 billion) for national development, and more than 4,000 enterprises have been equitised on the Việt Nam's stock market. 2. Year of international shocks Việt Nam's stock market experienced significant impacts of several international events, including the shutdown of China's stock market on April 1, the Brexit vote on June 24 and the US presidential election on November 9. All these events shook the Vietnamese stock market, leading to sell-offs by investors. Two of the worst hits were on June 24 and November 11 when the benchmark VN Index slumped 5.5 per cent and 3 per cent, respectively. 3. Circular directs trading of SOE shares Circular 115/2016/TT-BTC took effect on November 1. It says that a State-owned enterprise (SOE) must trade its shares on the Unlisted Public Company…... [read more]




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