Checking and supervising of electronic bond bidding at the Hanoi Stock Exchange. (Source: VNA) Hanoi (VNA) – Manysecurities companies have opted to issue corporate bonds to raise capital tofinance their margin lending service, following upbeat forecasts for the marketin 2018.Vietnam’s benchmark VN-Index closed 2017at over 984 points, a rise of 48 percent over the end of 2016. The localsecurities market value reached about 3.36 quadrillion VND (147.4 billion USD),equivalent to more than 74 percent of the country’s gross domestic product(GDP).The boom on the securities market hashelped brokerage companies expand their margin lending, but also illustratesthat their capital growth has not caught up with investors’ borrowing demand.To finance their lending expansion, manycompanies have decided to issue bonds.Saigon Securities Inc is seekingshareholders’ approval for the issuing of a maximum 1.2 million convertiblebonds worth total 1.2 trillion VND in 2018 at the rate of 4 percent per year.The bonds will likely be offered to less than 100 investors, excluding professionalinvestors, with priority given to foreign financial institutions.According to the company, this issue isaimed at raising capital for its operation.In late December, HCM Securities JSC issued800 billion VND bonds to seven investors in a private placement. These one-yearnon-convertible and non-warranty bonds were sold at the coupon rate of 9 percentper year.Earlier in October, Tan Viet Securities Inc(TVSI) also offered corporate bonds worth 150 billion VND to investors with anattractive interest rate of 9 percent per year for the first three months. Therates for the following terms were equal to the 12-month saving rate ofVietcombank…
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This decrease came after the Ministry of Finance made restructuring securities firm a priority in early 2012. The main purpose was to heighten operational quality, financial capability, corporate governance and risk management. “The number of securities companies has reduced, but the quality has improved. Many firms now have the capacity to move to the higher model of investment banking,” said Nguyen Vu Quang Trung, deputy general director of the Hanoi Stock Exchange. Twenty-four businesses have closed through a variety of processes including operational termination, suspension, dissolution and merger and acquisition. Some firms have downsized their operating scale by eliminating brokerage services, self-trading or…... [read more]
Ending September, the total lending to stock investors by the 17 biggest brokerage companies crossed VND24 trillion (US$1.1 billion), with a rise of just 2 per cent compared to the end of the second quarter.Securities companies lent over VND23.5 trillion in the first half of 2016.However, the nine-month margin value is still 16.8 per cent higher than that at the beginning of the year.Stock analysts have attributed it to a slowdown in the market in the third quarter.The benchmark VN-Index on the HCM Stock Exchange rose by around 8.5 per cent in the last three months; it climbed 14.7 per…... [read more]
HA NOI (VNS) — Total securities lending at brokerage companies has soared dramatically, raising concern that over-lending could lead to volatility when the market slumps.Margin lending at the 10 biggest securities companies reached VND10.149 trillion ($481 million) in the first quarter, up 68 per cent over the same period of last year, according to Vietstock.vn.HCM Securities Co (HCM) was the biggest lender with outstanding loans reaching VND1.884 trillion ($89.3 million). ACB Securities Co followed closely with total loans of VND1.876 trillion ($88.9 million). Saigon Securities Inc (SSI) and MB Securities (MBS) lent around VND1.5 trillion ($71 million) each.Margin lending increased…... [read more]
Local firm seeks to remove Doi Canal slumsVan Nam HCMC - Saigon Housing and Infrastructure Development Joint Stock Company is looking for the city government’s nod for a project worth over VND9.23 trillion (US$417 million) to remove houses in the slumps along Doi Canal in District 8. There are more than 5,300 slump houses with 32,000 people along the canal, including more than 4,390 houses on the southern bank. The company proposes the project be implemented under the public-private partnership. It will arrange funds for site clearance and compensation for affected households and will aid them to buy houses at…... [read more]
Pham Hong Son, head of the State Securities Commission (SSC)'s Securities Business Management Department, told local online VnEconomy that the figures were based on reports that securities companies sent to the SSC.This is one of the few times the SSC has published margin lending figures. Previous estimates were informal and often based on financial statements of securities companies which have different margin lending data. The official publication of this data is expected to help reduce the impact of inflated information on the market.Son said the size of current margin lending was not risky for the market if compared with the…... [read more]
After five years of aggressive restructuring, the number of securities companies here has reduced from 105 to 81 in 2016. This decrease came after the Ministry of Finance made restructuring securities firm a priority in early 2012. The main purpose was to heighten operational quality, financial capability, corporate governance and risk management.“The number of securities companies has reduced, but the quality has improved. Many firms now have the capacity to move to the higher model of investment banking,” said Nguyễn Vũ Quang Trung, deputy general director of the Hà Nội Stock Exchange.Twenty-four businesses have closed through a variety of processes…... [read more]
An investor opens an account at VNDirect securities in Ha Noi. — VNS Photo Thai Ha HA NOI (VNS) — Margin trading generated more profits for investors as well as securities firms and higher market liquidity, but it also posed many risks if not complied, heard a conference in HCM City yesterday.In the first half of this year, margin loans of top 10 brokerages reached over VND6 trillion (US$283 million), rising 30 per cent compared to the end of last year.Some brokerages violated regulations of the lending ceiling to lure investors. But it created risks and an unfair competition among…... [read more]
The shares of Saigon Securities Incorporated (SSI) was listed on the Hanoi Securities Trading Centre (HaSTC) from December 15. SSI is the largest Vietnamese securities firm to list on the stock market. The Vietnam Business Forum has an exchange with Mr. Nguyen Duy Hung, Chairman and CEO of SSI. Could you give us a brief introduction of the current financial capacity and operations of SSI? As the first securities company to be set up in Ho Chi Minh City in 2000, SSI now has a chartered capital of VND500 billion (US$31.25 million) and is rated the most reliable securities…... [read more]
For Sacombank Securities Company (SBS), merging with another brokerage is a fait accompli: its accumulated losses exceed its capital. Regulations stipulate that brokerages will be suspended if their accumulated losses exceed 50 per cent of their chartered capital.SBS has a capital of VND1.27 trillion (US$59 million), relatively large compared to other brokerages. But it had accumulated losses of some VND1.3 trillion by the end of last year.The main criterion for selection of a partner is funds, the company said. After the merger, it might think of issuing more shares to increase its capital. This year the HCM City-based securities company…... [read more]
Sugar firms seek to compete with imports from ThailandNgoc Hung By Ngoc Hung - The Saigon Times Daily HCMC – Domestic sugar companies are mulling a host of measures including turning out products able to better compete with sugar imports from Thailand. The Vietnam Sugar and Sugarcane Association (VSSA) said a majority of local sugar companies posted low profit or even suffered losses last year since they were forced to sell their products at reduced prices to cope with cheap sugar from Thailand. VSSA said sugar demand of confectionery and beverage producers has fallen after the Lunar New Year holiday,…... [read more]
