The race to offer margin loans is fueled by interest rate reductions and promotions.

From September 1st to November 30th, SSI Securities Company announced the launch of the "Margin Interest Cashback" program and "M9 - The Power of Margin: The More You Borrow, the More Favorable the Interest Rate". Accordingly, the margin lending interest rate applied ranges from 9 - 11%/year for customers with an average monthly loan balance of 3 billion VND or more.

In addition, SSI also applies a margin interest refund policy of up to 30%. Specifically, customers with an average outstanding balance from VND 100 million to less than VND 500 million per month will receive a refund of VND 300,000; those with an average outstanding balance from VND 500 million to less than VND 1 billion will receive a refund of VND 500,000... According to the brokerage staff's explanation, for example, customers using margin with a value from VND 30 million to VND 499 million will receive a maximum refund of VND 300,000, equivalent to enjoying the lowest margin interest rate of 9.5 - 9.9%, while SSI's current lending interest rate is 13.5%.

Many securities companies are lowering interest rates and offering promotions for margin loans.

Techcombank Securities Company (TCBS) also announced on September 1st a change in margin loan interest rates applicable to all regular customers. Accordingly, the T3 flexible loan package has an interest rate of 3%/year for the first 3 days and then 18.25%/year (equivalent to 0.05%/day). The interest rate for the T5 flexible loan package is 10%/year. Previously, TCBS had reduced the general margin loan interest rate from 13.7%/year to 12.99%/year. The company also launched a promotional program "Preferential Loan, Gratitude Interest Rate" with an interest rate of only 9.9%/year from the beginning of August and lasting until October 6th...

Meanwhile, ACBS Securities Company is offering a 7-day interest-free margin program. After this period, customers will have to pay interest at 15% per year. For the T14 margin program, customers only pay 8% interest per year for the first 14 days, and from the 15th day onwards, an interest rate of 15% per year applies...

According to securities firms and experts, lower interest rates are a key factor driving the financial services industry, including the stock market. Many investors have shifted capital from banking to other investment channels, but the stock market remains the most attractive. Simultaneously, lower margin lending rates are stimulating demand for loans to increase investment.

According to a report by VnDirect Securities Company, as of the end of Q2 2023, the amount of margin lending at securities companies was VND 140,000 billion. The ratio of margin lending to total listed assets in the industry has typically ranged from 17% to 20% in the last three years. Analysts expect total margin lending across the market to reach VND 155,000 - VND 180,000 billion in the second half of 2023, an increase of 10-30% compared to the end of Q2 2023. With the total equity of 30 companies reaching nearly VND 183,000 billion at the end of Q2 2023, this figure suggests that the margin lending/equity ratio for the entire industry will be around 0.85 - 1.

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