The realty sector recorded a strong rise in the value of corporate bonds issued in the first six months of 2021, but risks still abound amid the impact of COVID-19 on production and businesses.
The value of corporate bonds issued in October was 9.5 trillion VND (409 million USD), down 12.8 percent from September, according to the Hanoi Stock Exchange (HNX).
Private corporate bonds raised in September dived from the previous month after a decree took effect to tighten the issuance on the corporate bond market.
Enterprises in the real estate sector issued some 45.59 trillion VND (around 2 billion USD) worth of bonds in the first half of this year, equal to 80 percent of the figure in 2019 as a whole.
The Hanoi Stock Exchange (HNX) has issued a new rule to run the corporate bond portal to publicise bond deals and give investors more news about the market.
The Government’s Decree 81, which comes into effect on September 1, will help raise the corporate bond market standards and remove low-quality issuers to better protect investors.
The domestic corporate bond market developed rapidly in April, an official from the Ministry of Finance (MoF) said on May 11, marked by the strong involvement of private investors.
The issuance of corporate bonds in Indonesia will likely decline this year as many companies shelve plans to seek funding because of unfavorable global economic conditions, analysts have said.
The Ho Chi Minh City Real Estate Association (HoREA) has asked for corporate bond regulations to be loosened to help businesses get through the COVID-19 pandemic.
The Ministry of Finance will tighten regulations over corporate bond issuance because of an overheating market to protect investors and prevent risks which might arise from the abuse of this capital raising channel.
Investors should make careful decisions when purchasing corporate bonds, especially coming with high yield rates, to avoid risks, the Ministry of Finance (MoF) has said.
The bond market continued to grow in the second quarter of 2019, by 2.6 percent from Q1, to 52.9 billion USD, including 48 billion USD worth of G-bonds and 5 billion USD worth of corporate bonds.
Vietnam’s local currency bond market grew 2.6 percent to 52.9 billion USD in the second quarter of this year, after a 0.7 percent expansion in the first quarter.
The State Bank of Vietnam (SBV) has instructed local banks to better control risks in corporate bond investment, especially bonds of real estate firms.
Business
