Businesses still hesitant towards new bond trading system
Businesses still hesitant towards new bond trading system
Three months after the inception of the separate corporate bond trading system, there have been only 300 corporate bond codes registered for trading, accounting for only one-fourth of the number of bonds that must be traded.
Employees at Hà Nội Stock Exchange (HNX) check bonds. When bonds are listed on the stock exchange, they need to be carefully inspected by management agencies under strict criteria and requirements, thereby creating confidence for investors. — VNA/VNS Photo |
Putting bonds on the new bond trading system not only helps make the buying and selling process transparent, but also promotes businesses to mobilise capital, according to Đỗ Đức Mạnh, Deputy General Director of Hà Nội Stock Exchange (HNX).
According to HNX, since the separate corporate bond trading system went into operation (July 19), there have been nearly 300 bond codes traded, corresponding to a transaction value of more than VNĐ35 trillion.
Corporate bond codes with high transaction value included Vinfast, with more than VNĐ8.4 trillion, Vietcombank with nearly VNĐ5.9 trillion, and BIDV with more than VNĐ3.9 trillion.
Notably, the transaction value increased sharply month by month. In July, the recorded transaction value was VNĐ3.6 trillion, in August VNĐ7 trillion, in September VNĐ9.5 trillion and in October VNĐ15 trillion.
However, compared to the size of the corporate bond market, this transaction volume remains very modest, said experts.
According to information from Việt Nam Securities Depository and Clearing Corporation (VSDC), the number of documents VSDC has been processing is up to 700 sets. However, many businesses, after receiving the registration certificate, have not yet completed the procedures to list their bonds on the exchange.
Phạm Thị Thanh Hương, Deputy Chief Inspector of the State Securities Commission, said that according to Decree 153 of the Government, if an issuer of corporate bonds fails to or is slow to list bonds on the separate corporate bond trading system, it would be fined from VNĐ10-400 million, depending on the overdue period.
Đỗ Bảo Ngọc, Deputy General Director of Kiến Thiết Securities Company, said that even the highest fine value of VNĐ400 million remains still too small compared to the enterprise's issuance scale of hundreds of billions of đồng.
Businesses that are slow to list bonds on the exchange also understand this regulation, but they still accept the fines, said Nguyễn Quang Thuân, Chairman of FiinGroup.
According to a report by VNĐirect Securities Company, in the third quarter of 2023, there were 88 corporate bond issuances with a total issuance value of VNĐ100 trillion, 2.6 times higher than the second quarter of 2023 and up 50 per cent over the same period last year.
According to Đỗ Bảo Ngọc, the reasons include the fact that some businesses do not fully understand the listing procedures, many businesses with poor financial situations are hesitant to list on the exchange due to information disclosure issues. Listing can also reveal sensitive or unfavourable information for businesses, affecting their reputation and image.
In addition, some businesses are concerned that listing on a separate corporate bond exchange will reduce the value of bonds, due to market fluctuations and competition from other bonds.
Another reason comes from the fact that the corporate bond market is also affected by the unstable confidence of investors, due to the violations of some businesses that have recently been handled.
To promote the listing of corporate bonds, experts suggest increasing sanctions for businesses that are slow or do not list their bonds on the exchange.
Notably, financial expert Phan Dũng Khánh added that it was necessary to allow investors to continuously conduct matching orders as they can do on the stock exchange, instead of only trading bonds through the agreement method as currently. .
In addition, when bonds are listed on the stock exchange, they needed to be carefully inspected by management agencies under strict criteria and requirements, thereby creating confidence for investors, he said.
