The improved transparency in the stock market has helped regaininvestors’ trust in 2013, and the trend will continue this year, saidChairman of the State Securities Commission Vu Bang.
Vietnam ’s securities market is predicted to see a strong rebound after suffering slight losses.
The Government’s macro-economic solutions, including the morecohesive execution of financial and monetary policies, decreasinglending interest rates, tax rescheduling and debt restructuring in 2013have laid sound preconditions for the stock market in 2014, Bang said.
Sharing the view, economist Vu Dinh Anh alsounderlined that a stable macro economy will be pivotal to theperformance of the stock market when other rivalling investment channelsare losing their attractiveness.
The propertymarket, for example, is still struggling to get rid of the year-longstagnation while the gold market is affected by declining prices on theworld market, according to Anh.
The experiencedexpert also projected that commodities on both stock exchanges in thecountry will be abundant with increasingly improved quality in 2014.
In the year, securities companies, financialinstitutions and enterprises with poor liquidity will be screened toraise the quality of the shares they post.
Theexpert also noted that the transparency level of the stock market willpositively affect other sectors of the national economy.
It will enable investors to spot healthy entities while pressing onlisted businesses to scale up their restructuring for better operations.
In 2013, the Government issued decree108/2013/ND-CP, mandating sanctions against administrative infringes insecurities operations and transactions on the stock market.
The document puts an end to the phenomenon that equitised businesseshave repeatedly delayed their planned listing on the stock exchange s .
Vu Thi Chan Phuong, head of the InspectionDepartment of the State Securities Commission, said the decree isextremely important to the stock market as it creates an open andtransparent environment to protect investors.
CEO of Hanoi Stock Exchange (HNX) Tran Van Dung noted the decreedemonstrates the determination of the Government and the securitiessector to defend the rights and interests of investors.
The decree requires those businesses which have already listed orplan to list on the stock market, to observe their responsibilities andobligations to investors, Dung said.
Togetherwith the decree, the Prime Minister has given out instructions regardingthe listing of commercial banks on the bourses in a bid to raise thetransparency level and reduce overlap in ownership.
According to economic expert Nguyen Tri Hieu, commercial banks arenot happy with the instruction but it is a necessary move, given thatinternational norms require those who sell shares to the public to belisted in the stock market.
According tostatistics released by Vietstock, only 29 out of the 694 listedcompanies on both national stock exchanges took the initiative todistribute compulsory information to investors, as required by Circular52/2012/TT-BTC of the State Securities Commission about publishinginformation on the stock exchanges.
Those releasing information were mainly Ho Chi Minh City-listedcompanies, as opposed to only four listed on the Hanoi Exchange.
The remaining 95 percent of listedcompanies were found to have not released information. Experts notedthat the numbers indicate that many listed companies are not properlyserving their investors, which might cause their stocks to beundervalued.
Experts urged listedcompanies to pay attention to investor relations (IR), which would helpensure transparency and the rights of shareholders, while enhancing theimage of companies in investors' eyes.-VNA
Vietnam ’s securities market is predicted to see a strong rebound after suffering slight losses.
The Government’s macro-economic solutions, including the morecohesive execution of financial and monetary policies, decreasinglending interest rates, tax rescheduling and debt restructuring in 2013have laid sound preconditions for the stock market in 2014, Bang said.
Sharing the view, economist Vu Dinh Anh alsounderlined that a stable macro economy will be pivotal to theperformance of the stock market when other rivalling investment channelsare losing their attractiveness.
The propertymarket, for example, is still struggling to get rid of the year-longstagnation while the gold market is affected by declining prices on theworld market, according to Anh.
The experiencedexpert also projected that commodities on both stock exchanges in thecountry will be abundant with increasingly improved quality in 2014.
In the year, securities companies, financialinstitutions and enterprises with poor liquidity will be screened toraise the quality of the shares they post.
Theexpert also noted that the transparency level of the stock market willpositively affect other sectors of the national economy.
It will enable investors to spot healthy entities while pressing onlisted businesses to scale up their restructuring for better operations.
In 2013, the Government issued decree108/2013/ND-CP, mandating sanctions against administrative infringes insecurities operations and transactions on the stock market.
The document puts an end to the phenomenon that equitised businesseshave repeatedly delayed their planned listing on the stock exchange s .
Vu Thi Chan Phuong, head of the InspectionDepartment of the State Securities Commission, said the decree isextremely important to the stock market as it creates an open andtransparent environment to protect investors.
CEO of Hanoi Stock Exchange (HNX) Tran Van Dung noted the decreedemonstrates the determination of the Government and the securitiessector to defend the rights and interests of investors.
The decree requires those businesses which have already listed orplan to list on the stock market, to observe their responsibilities andobligations to investors, Dung said.
Togetherwith the decree, the Prime Minister has given out instructions regardingthe listing of commercial banks on the bourses in a bid to raise thetransparency level and reduce overlap in ownership.
According to economic expert Nguyen Tri Hieu, commercial banks arenot happy with the instruction but it is a necessary move, given thatinternational norms require those who sell shares to the public to belisted in the stock market.
According tostatistics released by Vietstock, only 29 out of the 694 listedcompanies on both national stock exchanges took the initiative todistribute compulsory information to investors, as required by Circular52/2012/TT-BTC of the State Securities Commission about publishinginformation on the stock exchanges.
Those releasing information were mainly Ho Chi Minh City-listedcompanies, as opposed to only four listed on the Hanoi Exchange.
The remaining 95 percent of listedcompanies were found to have not released information. Experts notedthat the numbers indicate that many listed companies are not properlyserving their investors, which might cause their stocks to beundervalued.
Experts urged listedcompanies to pay attention to investor relations (IR), which would helpensure transparency and the rights of shareholders, while enhancing theimage of companies in investors' eyes.-VNA
