The corporate bond market is sluggish, but expectations are high for it to become more active soon.

28/07/2023 15:19 Nhat Linh Print article

ANTD.VN - After a booming opening trading session in terms of value, the private corporate bond exchange is currently experiencing rather sluggish trading. Nevertheless, HNX leaders believe that the long-term benefits of the exchange are significant.

According to HNX data, since the launch of the Private Corporate Bond Trading System, more than 8.3 million bonds have been traded through the system with a total transaction value of approximately VND 2,117.5 billion.

However, the majority of bond transactions were concentrated in the opening session, with over 5 million bonds traded, totaling over VND 1,781 billion.

This includes 15 bond certificates from Vietcombank with a total volume of 1,200 bonds, face value of 1 billion VND each, equivalent to a value of 1,200 billion VND. Along with that are over 5 million bonds from Vinfast, with a total value of over 509 billion VND.

To date, the system has added bonds from two more companies to the trading system: 3.25 million bonds from BIDV Bank worth nearly 330 billion VND and 7,254 bonds from the Industrial and Transport Development Investment Joint Stock Company worth 7.31 billion VND.

The corporate bond market is sluggish but is expected to become more active soon (image 1).

Corporate bond trading on the exchange was very quiet in the early stages.

Explaining the subdued trading on the exchange, Mr. Nguyen Duy Thinh - Chairman of the Hanoi Stock Exchange (HNX) - said that in the initial stage, the supply of goods was modest, so trading was also modest. However, once the goods are listed for centralized and comprehensive trading, liquidity will gradually increase.

"The important thing is that transparency will be improved. Investors will have clearer information about prices, values, and trading volumes to make accurate investment decisions," said the HNX leader.

According to the Chairman of HNX, in accordance with the regulations in Decree 65, issuing organizations will have to list their bonds on the centralized exchange within 3 months from the date the system officially comes into operation.

This three-month period is sufficient, but it must be done very quickly. This allows time for the company to complete internal procedures, register with the Securities Depository Center and the Hanoi Stock Exchange to list the bonds on the centralized exchange.

Currently, the market has over 1,000 bond codes issued by approximately 500 companies with a total outstanding debt of 1,030 trillion VND. After these codes are listed on the centralized trading system, liquidity will improve, and the bond market will gradually recover.

"First, it will come from institutional investors, because market liquidity is just beginning to recover abundantly at this stage, then it will spread to individual investors. When confidence returns, the issuance market will show many positive signals, which will lead to a vibrant secondary market in the second half of the year," Mr. Thinh predicted.

Currently, HNX is developing and finalizing phase 2 of its private corporate bond trading system, which is expected to be operational in 2024. At that time, the system will be supplemented with an online trading channel alongside the current remote trading method.

Comment (0)