Two bottlenecks need to be removed to upgrade stock market
Society – Economy - Ngày đăng : 12:17, 24/07/2024
The seminar was held by Investment Newspaper in collaboration with the State Securities Commission (SSC) and partners.
Speaking at the seminar, Mr. Hai said that market upgrade is the most important solution to strongly promote the development of the stock market which serves as a significant channel for important capital mobilization for the economy. The Prime Minister has directed relevant ministries and agencies to address the challenges hindering the market’s upgrade by 2025.
However, there are still two major bottlenecks, namely pre-funding requirements and foreign investor quota (foreign room).
According to Mr. Bui Hoang Hai, addressing the issue of pre-funding requirements, the Ministry of Finance is currently finalizing a draft to amend and supplement some articles of Circular 120/2020/TT-BTC, Circular 119/2020/TT-BTC, Circular 121/2020/TT-BTC and Circular 96/2020/TT-BTC.
Strategy Director Le Thi Le Hang of SSI Securities Corporation said that in addition to the two barriers, the Vietnamese stock market has not yet developed new products to attract investors. Currently, the number of individual and retail investors on the stock market accounts for over 90 percent.
Meanwhile, General Director Nguyen Thi Thu Hien of Techcombank Securities Company believed that in order for the stock market to develop into an effective capital mobilization channel for the economy, strong investment in technology and diversification of investment products is very important, because a lot of investors are young people.
According to the statistics of the State Securities Commission (SSC), after 24 years of formation and development, from only 2 initial stocks, there are now more than 1,800 stocks. Market capitalization has increased rapidly, reaching around US$300 billion, equivalent to 70 percent of GDP. Liquidity in 2024 is estimated at nearly US$1 billion per trading session.