KRX system set to launch in June after four-year delay

KRX system set to launch in June after four-year delay

This development aligns with HoSE's broader goal of upgrading the country's stock market status and fostering a sustainable capital market environment.

An investor watches market movements at the headquarters of HoSE. — VNA/VNS Photo

The long-awaited KRX system, designed to enhance trading efficiency in Việt Nam's stock market, is expected to finally launch in the second quarter of 2025, according to VNDirect Securities Corporation. 

VNDirect recently reported that the Hồ Chi Minh Stock Exchange (HoSE) had notified securities firms about upcoming testing phases, with expectations that the KRX system would be operational by mid-2025. 

This development aligns with HoSE's broader goal of upgrading the country's stock market status and fostering a sustainable capital market environment.

HoSE revealed that it had completed necessary preparations and is gearing up for the system's implementation. 

The KRX system, developed by the Korea Exchange, promises several innovative features, including the ability to facilitate odd-lot trading and same-day settlement (T+0), which could attract significantly more investors and improve overall market liquidity.

This news comes after a four-year delay, raising hopes among investors and analysts regarding the potential impact on trading dynamics and market liquidity.

VNDirect forecasts that the benchmark VN-Index could continue its upward trend, potentially reaching a resistance level of around 1,340 points in March. The anticipated improvements in trading infrastructure are seen as catalysts for increased investor participation.

Additionally, several supportive factors are contributing to a favourable market outlook. Low interest rates on bank deposits are encouraging domestic capital to flow into the stock market. 

The State Bank of Việt Nam (SBV) has directed financial institutions to stabilise deposit rates and reduce lending rates, creating a conducive environment for investment.

Despite the positive outlook, analysts caution that global trade tensions could pose risks to market stability. 

Recent developments, including tariffs imposed by the US, Canada, Mexico and China, could lead to increased volatility in global markets, which might affect investor sentiment in Việt Nam. 

Nonetheless, Việt Dragon Securities believes that Việt Nam's stock market is in a better position to weather these risks compared to global counterparts. Factors such as attractive market valuations and robust growth prospects are expected to bolster investor confidence. 

Bizhub