VCN - On the morning of 2nd January 2018, Minister of Finance Dinh Tien Dung struck the gong to open the first securities trading session of 2018 at the Hanoi Stock Exchange (HNX).
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|Photo: Minister Dinh Tien Dung struck the gong to open the first securities trading session of 2018|
The Gong Ceremony was attended by Deputy Minister of Finance Tran Xuan Ha, Vice Chairman of Ha Noi People's Committee Nguyen Doan Toan and representatives from the Ministry of Finance, State Treasury (SC), SCIC, VSD, Securities Business Association, Vietnam Bond Market Association.
At the ceremony, Minister Dinh Tien Dung emphasized that in 2017, the stock market had made great progress. The young derivatives market has developed rapidly, contributing to perfecting the structure of the stock market in particular and the financial market. With the participation of many large and reputable enterprises, the scale of the stock market has reached over 78% of GDP in 2016, equivalent to 70.2% of GDP in 2017, basically reaching the target set for 2020 by the Government.
The 2017 stock market has affirmed its role as a channel of medium and long-term capital mobilization for the Government and enterprises as an attractive investment channel for the people, making important contributions to SOE equitization and divestment and attracting foreign investment into Vietnam.
The Minister highly appreciated and praised the efforts of the State Securities Commission and other units under the Ministry of Finance, two Stock Exchanges and Vietnam Securities Depository, listed enterprises and members in all forms and the sustainable investment of the people, which had built and created an image for Vietnam stock market in 2017 with success beyond expectations.
In order for the stock market to further develop in terms of scale and quality in 2018, the Minister instructed the SSC and relevant units to perfect institutions, policies and mechanisms, with a focus on finalizing the revised Securities Law in the spirit of creating favorable conditions for the stock market to develop and promote more and better its function and role of the stock market in the economy; to continue to restructure the stock market in the direction of speeding up the combination process of the 2 Stock Exchanges; and continue to restructure the system of intermediary institutions in the market in accordance with the Government’s direction.
The Minister also directed the development of new products and new markets to further improve the structure of Vietnam’s stock market, focusing on bringing covered warrants into trading on the Ho Chi Minh City Stock Exchange at the end of the first quarter of 2018, launching Government bond future contracts at the Hanoi Stock Exchange in the third quarter of 2018; improving legal basis and technical systems for the corporate bond market to be implemented from 2019; studying the mechanism of capital mobilization for start-up enterprises through the stock market; continuing to organize well the bidding and Government bond trading for timely and effective capital mobilization for the state budget and for development and investment; strengthening fiscal and budgetary discipline; diversifying investor establishments and products; studying the issuance of "green bonds"; and issuing a legal framework for the issuance of green bonds
In addition, SOE equitization and divestment should be promoted, in which, focusing on promulgating the mechanism of market and bookbuilding to improve and promote equitization auctions associated with listing and trading registration on the stock market.
On behalf of the whole securities sector, Chairman of SSC Tran Van Dung thanked the attention of leaders of the ministries and sectors of the securities sector and affirmed that SSC and its members would actively cooperate with the Stock Exchanges, the Securities Depository, relevant ministries and sectors and its members to synchronously implement groups of solutions to overcome difficulties and create the most favorable mechanism for the participants. Thereby, promoting the development of the stock market.
Prior to the Gong Ceremony, Mr. Nguyen Thanh Long, Chairman of HNX reported the performance results of the HNX in the past year. Accordingly, in 2017, the HNX held biddings and mobilized over VND 194 trillion, of which the State Treasury mobilized over VND 159 trillion. Average term of Government bond in 2017 rose to a level of 12.75 years, an increase of 4 years compared to 2016 average, the average trading value reached nearly VND 9,000 billion per session, up 40% over 2016.
The derivatives market after 4 months of operation has achieved positive results. Although there are only over 16,800 accounts, accounting for less than 0.8% of total number of accounts in the stock market, the average daily trading volume accounts for about 20% of the trading value in both stock exchanges.
The stock market has gained good growth, especially the UPCoM market - a tool supporting the SOE equitization and making the SOEs equitization transparent. The stock market capitalization of Hanoi Stock Exchange increased by 45% compared to the end of 2016, of which the market capitalization of UPCoM reached over VND 603 trillion, doubling compared to the end of 2016.
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Liquidity in the market increased sharply, the average trading volume increased 35% and trading value increased 71% over the same period last year. Supervision and management of the stock market continued to be strengthened and the governance and regulatory measures continued to be improved.
By H. Giang/ Huyen Trang