Securities authority to tighten stock market monitoring

The State Securities Commission (SSC) has said the restructuring and supervision of the stock market would be improved next year to ensure the market's transparency and efficiency in operating.

Minister of Finance Dinh Tien Dung said at SSC's meeting last week that the commission would focus on solutions to expand the scale of operations and improve the market's quality, according to Vneconomy newspaper.

SSC's statistics showed that the stock market maintained growth so far this year, reflected through increases in the benchmark indices.

The VN-Index on the Ho Chi Minh City Exchange rose 22 percent, in comparison with the end of last year, while the HNX-Index in the Hanoi Stock Exchange was 13 percent higher. The increases in benchmark indices placed Vietnam among the 10 countries with the strongest stock market recoveries in the world.

Also, the market capitalisation reached VND964 trillion (US$45.9 billion), an increase of VND199 trillion ($9.47 billion), equivalent to 31 percent of the country's gross domestic product (GDP).

Meanwhile, the average trading value reached VND2.57 trillion ($123.190 million) each session, representing an increase of 31 percent over last year, mainly thanks to the transactions of Government bonds, which witnessed a rise of 90 percent to VND1.25 trillion ($59.85 million) per session.

The stock market also attracted many foreign investors, with registered accounts rising about 55 percent.

Dung said enacting the restructuring of the stock market, which was approved by the Prime Minister, must be quickened, focusing on enhancing its quality, financial capacity and management capacity.

In addition, the management and supervision of the market must be improved, as the stock market becomes more developed and sophisticated, to ensure transparency and a market that remains healthy.

Pham Hong Son from SSC also said that the commission would determine how to eliminate weak securities companies through acquisitions, mergers or dissolutions.

More than 60 percent of securities companies reported losses this year, which is slightly less than last year.

Source: VNA

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