The strong development of the stock market, with rising retail investors and financial investment demand, has prompted many banks to cooperate with securities firms and fund management companies to add more cross-selling products.
Many securities companies are planning to raise capital through forms such as dividend payment, purchase rights and private offerings to meet the growth of the stock market.
The active domestic market with high liquidity, mostly from local retail investors, has been supporting securities firms this year with many reporting outstanding performance.
Even though the stock market is expected to continue rising, securities firms still warned of some corrections in the short-term due to profit-taking pressure.
After touching bottom in the first quarter of 2020 because of COVID-19, Vietnam’s stock market staged a strong comeback in the following quarter, allowing securities firms to enjoy sharp increases in both revenue and profit.
The Vietnam Association of Securities Businesses said a new code of conduct will be introduced in 2020 to improve the ethical standards of brokerage firms and brokers.
A new code of conduct will be introduced in 2020 to improve the ethical standards of brokerage firms and brokers, according to the Vietnam Association of Securities Businesses (VASB).
More than 150 enterprises successfully issued bonds worth total 179.1 trillion VND (7.7 billion USD) in the first nine months of this year, a report on the Hanoi Stock Exchange bond market showed on October 8.
After two years of operation, smaller securities firms in terms of market capitalisation have beaten big players in derivatives brokerage market share.
Vietnam’s benchmark VN-Index has risen since the ratification of the EU-Vietnam trade agreement on the back of listed firms whose exports would be boosted by the deal.
The Ho Chi Minh Stock Exchange (HOSE) on January 5 announced the top 10 securities companies with the largest brokerage share and fund certificates in the fourth quarter of 2018.
Analysts and securities firms are hoping Vietnamese shares will perform better in 2019, but there are still many challenges that will clearly weigh on market sentiment.
The State Securities Commission (SSC) will enhance the quality of securities firms by shutting down and revoking licences of financially-weak companies to ensure the sector is healthy.
Many securities companies have opted to issue corporate bonds to raise capital to finance their margin lending service, following upbeat forecasts for the market in 2018.
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