Vietnam may lift company foreign ownership cap, regulator says
Vietnam may lift company foreign ownership cap, regulator says
Vietnam’s State Securities Commission may increase the foreign-ownership cap on some companies as part of a package of measures to boost the nation’s equity markets.
The regulator will start a pilot program allowing overseas investors to own more than 49 percent of companies in some sectors, according to a document released by the commission at a briefing in Hanoi today. The benchmark VN Index jumped 2 percent at 10:16 a.m. in Ho Chi Minh City, making it the best performer in Asia today. The gauge is heading for an 11th daily gain, the longest winning streak since the 13 days through Sept. 13, 2011.
The commission also plans to widen trading bands on the country’s two stock exchanges “soon,” according to the document, which didn’t give further details. The limit on daily share-price gains or losses may be increased this month to 7 percent from 5 percent on the Ho Chi Minh City stock exchange and to 10 percent from 7 percent on the Hanoi Stock Exchange, Thoi Bao Kinh Te Saigon reported on its website today, citing an unidentified official at the regulator.
The authority may also raise the margin-financing ratio limit to 50 percent, according to the document. The commission will also form a credit rating agency, and introduce pension fund and bond-related products to boost trading, it said.
The VN Index (VNINDEX) has jumped 11 percent this year, the world’s best performer.
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