Research on implementing a mechanism for short selling securities from 2026

The Ministry of Finance and the State Securities Commission are urgently completing a project to apply a mechanism for short selling securities, with the roadmap expected to be implemented as early as 2026.

Short selling helps increase liquidity in the stock market.

This is one of the important contents in the Plan to implement Decision No. 2014/QD-TTg dated September 12, 2025 of the Prime Minister approving the Project to Upgrade the Vietnamese Stock Market.

According to the plan, the Ministry of Finance assigned the State Securities Commission to coordinate with the Vietnam Securities Depository and Clearing Corporation and stock exchanges to research and pilot the controlled short selling mechanism in the period of 2026-2028. Along with that, the authorities will continue to perfect the necessary technical and legal conditions for securities borrowing and lending, creating a basis for new trading activities to operate safely and effectively.

Allowing short selling is an important step to meet the market upgrading criteria of international organizations such as FTSE Russell and MSCI. This is not only a technical change, but also a necessary condition for the Vietnamese stock market to move closer to international standards, towards the goal of building a transparent, modern, and highly competitive capital market by 2030.

Currently, the domestic underlying market does not allow short selling, which is considered one of the factors limiting the upgrading process. According to the State Securities Commission, when implemented, this mechanism will contribute to increasing liquidity, diversifying investment strategies, and enhancing the attractiveness to international capital flows.

Short selling allows investors to trade in both directions, with the opportunity to optimize profits during both rising and falling market periods, thereby contributing to stabilizing liquidity and limiting unusual price fluctuations.

Along with the research on short selling, the Ministry of Finance and the State Securities Commission are also perfecting the mechanism of general trading accounts and considering removing the pre-transaction margin requirement. These are important technical requirements in the market upgrading criteria, and are also necessary preparations for the Vietnamese stock market to integrate more deeply with international practices.

In addition, the regulatory agencies continue to build a central clearing partner mechanism and upgrade the information technology infrastructure, ensuring smooth and safe payment, clearing and risk management operations. Due to the nature of short selling, which can increase risks during sensitive market periods, the Ministry of Finance and the State Securities Commission affirmed that they will implement it in a controlled manner, with strict regulations on margin ratios, borrowing limits and eligible securities portfolios.

Investors have the opportunity to trade two-way from 2026.

The research and implementation of the short selling mechanism from 2026 demonstrates the determination of the management agency in perfecting the structure and quality of Vietnam's capital market. This is a fundamental step, contributing to modernizing the trading infrastructure, attracting foreign investment flows, and affirming Vietnam's efforts in the goal of upgrading the stock market to emerging standards in the coming time.

CHAU ANH

Source: https://nhandan.vn/nghien-cuu-trien-khai-co-che-ban-khong-chung-khoan-tu-nam-2026-post922489.html