Another step forward in the roadmap to upgrade the stock market

Upgrading the market requires joint efforts

According to the Chairwoman of the State Securities Commission Vu Thi Chan Phuong, our country’s stock market has reached a certain level of size, like a person wearing a tight shirt, it needs to take a new step forward. Under the strong direction of the Prime Minister, the Ministry of Finance and the strong participation of market members have now further improved the criteria set by MSCI.

In July, the Commission will publish a draft for final comments on the amendment of four circulars on the securities market and payment flowchart. At the end of July, the Ministry of Finance will hold a conference in Singapore to collect final comments from investors before signing and promulgating. This is a continuation of the fact that throughout the past year, the Ministry of Finance and the State Securities Commission have continuously held many conferences and worked with many rating organizations.

Ms. Phuong said that the Ministry of Planning and Investment is reviewing to publicly post the foreign ownership ratio for industries with limited access. In parallel with specific stages, the Committee will restructure the commodity base, business organizations, and investors to further expand the ability to mobilize capital, IPO associated with listing.

"The upgrade depends on the objective assessment of international organizations. Therefore, it requires joint efforts of management agencies, coordination of ministries, listed enterprises, market members, custodian banks, investors, press agencies, etc. so that the market can soon be upgraded according to the 2025 target" - Chairman of the Securities Commission shared.

Improve the quality of listed enterprises

Mr. Nguyen Duc Hung Linh - Founder and Consulting Director of Think Future Consultancy - noted two issues when upgrading the market. The first is commodities. In 2017, there were only about 3 Vietnamese stocks in the MCSI basket, the amount of money attracted was very small. The second is how to stay in the ranking, typically like Pakistan. Vietnam is trying very hard to enter the list of emerging markets, but the important thing is the assessment of foreign investors on the Vietnamese market.

On the securities company side, Mr. Trinh Hoai Giang - General Director of Ho Chi Minh City Securities Company (HSC) - said that increasing capital is necessary to meet the new mechanism, non-margin trading under suboptimal payment conditions.

Mr. Nguyen Khac Hai - Director of Law and Compliance Control, SSI Securities Company - emphasized that foreign investors and the domestic market are a two-way relationship. We need capital and they also need the market to disburse.

For payment support solutions for foreign institutional investors, securities companies will evaluate their creditworthiness and provide services. The limit ratio is not 100% for all foreign investors due to capital capacity. To achieve 100%, we must wait for the Central Clearing Counterparty (CCP) model. In which, commercial banks need to be recognized as clearing members in the underlying market and regulations on hedge funds.

Source: https://laodong.vn/kinh-doanh/them-buoc-tien-trong-lo-trinh-nang-hang-thi-truong-chung-khoan-1368935.ldo