SSC to tighten stock market monitoring
SSC to tighten stock market monitoring
The State Securities Commission (SSC) 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 should 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 during 2013, reflected through increases in the benchmark indices.
The VN-Index on the HCM City Exchange rose 22 per cent, in comparison with the end of last year, while the HNX-Index in the northern bourse was 13 per cent higher. The increases in benchmark indices placed Viet Nam among the ten 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 per cent of the country's gross domestic product (GDP).
Meanwhile, the average trading value reached VND2.578 trillion ($123.190 million) each session, representing an increase of 31 per cent over last year, mainly thanks to the transactions of Government bonds, which witnessed a rise of 90 per cent to VND1.257 trillion ($59.85 million) per session.
The stock market also attracted many foreign investors, with registered accounts rising about 55 per cent.
Dung said enacting the restructuring of the stock market, which was approved by the Prime Minister, must be quickened, focus 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 per cent of securities companies reported losses this year, which is slightly less than last year.
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