Operating the individual corporate bond trading system

ANTD.VN - This morning (July 19), the Ministry of Finance held a ceremony to inaugurate and put into operation the system for trading individual corporate bonds at the Hanoi Stock Exchange.

At the market opening time, Deputy Prime Minister Le Minh Khai and other leaders performed the inauguration ceremony of the private corporate bond trading system, marking the beginning of the first trading session of the private corporate bond market.

Speaking at the ceremony, Minister of Finance Ho Duc Phoc affirmed that putting the private corporate bond trading system into operation is essential. The system is expected to increase market liquidity and provide regulators, market participants, and investors with more information about the market from primary to secondary levels, thereby enabling them to formulate policies for market management and development, as well as make more appropriate investment decisions.

Operating a private corporate bond trading system (image 1)

The system for trading individual corporate bonds will begin operating today, July 19th.

According to the Minister of Finance, by the end of 2022, outstanding loans in the market reached approximately 1.2 trillion VND, equivalent to 12.6% of GDP and 10% of the total outstanding credit in the economy . This figure shows that it is an important channel for mobilizing capital for the economy.

However, compared to its potential and relative size, Vietnam's corporate bond market is still modest. Meanwhile, the corporate bond market size in Malaysia reaches 56% of GDP, Singapore 38%, and Thailand 25%…

According to Minister Ho Duc Phoc, the market has experienced some shortcomings recently, particularly the exploitation of lenient policies, with some businesses violating regulations on information disclosure.

"Therefore, the establishment of a separate corporate bond system is necessary to develop a healthy, stable, efficient, transparent, and sustainable private corporate bond market, contributing to the creation of a diversified financial system, supporting businesses in raising medium and long-term capital, and reducing excessive dependence on bank credit channels," the Minister of Finance emphasized.

However, according to the Ministry of Finance leadership, the launch of the new individual corporate bond system is only the first step, and much work remains to be done in building and developing a market that is appropriate to the level of the economy, expanding international access, and improving transparency and public disclosure of corporate information, ensuring the rights of all market participants.

Accordingly, the solutions that need to be focused on are: perfecting institutional policies; organizing a stable, safe, and smooth-operating market; carrying out reforms and simplifying administrative procedures; promoting the dissemination of policies and laws, information on market conditions, and financial education for investors; and strengthening control and handling of unofficial information that negatively affects market operations.

In addition, promote the operation of intermediary institutions and market services; continue to strengthen supervision to rectify and strictly handle violations in the issuance, investment, and provision of services related to bonds, ensuring transparency and openness for the market.

According to the leaders of the Hanoi Stock Exchange, since June, the system has completed testing with members and the Vietnam Securities Depository Center. The test results show that the system has operated stably, meeting the requirements of members in order entry and information retrieval, and fulfilling the requirements of the Stock Exchange in system management and operation.

The transaction data has been transferred fully, accurately, and smoothly to the Vietnam Securities Depository Center for settlement.

The Hanoi Stock Exchange has also completed two training sessions for its members, preparing them for participation in and use of the secure system.

HNX anticipates that more than 1,600 individual corporate bond codes will be listed for trading after the system's launch.

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