Stock market remains stable over 2016
Despite the many fluctuations of the world stock market, the domestic market has maintained positive growth rates, said Vu Bang, Chairman of the State Securities Commission of Vietnam (SSC).
Vu Bang - Chairman of the SSC delivering his speech at the conference
He remarked that increases in listings, mobilisation, transactions and investment on the stock exchange had had great impacts on the overall growth of the country’s securities market.
National indexes experienced growth of 30 percent in 2016. The VN-Index on the HCM Stock Exchange experienced growth of 15 percent, the HNX-Index on the Hanoi Stock Exchange increased by 0.8 percent, with the total amount of market equitisation reaching 1.76 quadrillion VND (79.67 billion USD), equal to 42 percent of total GDP in 2016.
At present, there have been 695 listed stocks and fund certificates, and 377 registered stocks with total listed value reaching 712 trillion VND (32.1 billion USD), up by 22 percent, together with 590 bonds at a total listed value of 934 trillion VND (42.1 billion USD), up by 22.5 percent.
Liquidity also improved greatly, while the average level of transactions reached 6.8 trillion VND (309.6 million USD) per session, up 39 percent compared to the end of 2015.
Asset management companies had also increased their charter capital by 17.7 percent compared to the end of 2015.
Simultaneously, governmental control over joint stock companies had also improved the market’s quality greatly, as well as their financial and risk management ability.
Bang, on behalf of the SSC, announced the conclusive results from the stock market in 2016 and the SSC’s plan for 2017, at the SSC’s year end conference held in Hanoi last week.
The Ministry of Finance and the Government highly regarded the SSC’s efforts in building legal documents and policies, its active role in mobilising capital and funding for the reconstruction and development of the stock market, as well as its overall monitoring and inspection of the market to ensure a transparent and streamlined process for investors and stockholders alike, said Deputy Finance Minister Tran Xuan Ha at the conference.
Ha also encouraged the SSC to focus on improving the Law on Securities, reengineering the stock market to maintain the market’s regular activities. The SSC should also prepare to bring the derivative market into operation, and tighten the regulatory procedure on listed companies in 2017.
The SSC had also continued to improve external activities and international co-operation in 2016, by initiating bilateral co-operation with the US, Japan, Germany, Republic of Korea, Singapore, Laos and Cambodia, as well as successfully collaborated with the World Bank on managerial activities over securities and capital markets.
Bang and Ha expressed great optimism for Vietnam’s securities market in 2017, and committed to continue collaborating with other administrative authorities to maintain market stability and development in the year to come.