Derivatives interest many investors

 

Hanoi (VNA) – With less than a month left until derivatives products will be available for trading in the Vietnam securities market, institutional investors seem highly interested in the new products, according to vtv.vn.

The first two derivatives products that will become tradable in May are the index future contract and future bond contract.

Derivatives products have become popular in other advanced markets and the products are expected to help the country draw more foreign investment.

But in the domestic market, these are new and highly risky products. Therefore, individual investors will need time to get used to them, and institutional investors are expected to create the fundamental foundation for the development of this market in Vietnam.

Those products will reduce the risks in the price of stocks included in their long-term investment portfolios.

Vuong Tuan Duong, executive director at VinaCapital, said that the derivatives products would help attract more foreign investors to Vietnam’s securities market, increase the total market trading liquidity and raise the market valuation.

According to the institutional research and advisory division at Saigon Securities Inc (SSI), foreign investors in other financial centres like Hong Kong and Singapore are highly interested in Vietnam’s derivatives market as they are now able to invest in one index that represents the whole securities market instead of going through the two foreign exchange-traded funds (ETFs).-VNA