Market regulator agrees on financial leveraging for UPCoM stocks

Margin lending may be allowed on the Unlisted Pubic Company Market (UPCoM), the State Securities Commission (SSC) vice chairman Pham Hong Son said on Wednesday.

Market regulator agrees on financial leveraging for UPCoM stocks

A PV Oil gas station. The company is trading shares on the Unlisted Public Company Market (UPCoM) with code OIL. — Photo pvoil.com.vn

The Ha Noi Stock Exchange (HNX) must make a list of stocks on UPCoM that are qualified for margin lending and submit the list to the SSC next week, he said at a meeting with investment funds and securities firms.

The proposal will have to wait for the Ministry of Finance’s approval, the vice chairman added.

The Vietnamese stock market has been struggling in the last two months as fears about the spread of the novel coronavirus (COVID-19) have dampened investors’ confidence in risky assets.

If the margin-lending proposal is approved, it would be a boost for the secondary market, according to the SSC.

Brokerage and investment firms in recent media reports have expressed the idea that the market regulator should allow investors and brokers to use margin lending.

Margin lending and other financial leverage activities, which have been forbidden on UPCoM since the market’s opening in mid-2009, as the rules on UPCoM are less strict than those on the Ho Chi Minh and Ha Noi stock exchanges.

 

There have been several cases in which UPCoM-traded companies’ leaders are charged with stock price manipulation, causing losses for investors.

In recent years, many large-cap companies that are good enough to list shares on the two stock exchanges have debuted on UPCoM, such as the Airports Corporation of Vietnam (ACV), Viettel Global, the Vietnam Engine and Agricultural Machinery Corporation (VEAM), the Vietnam Rubber Group, Masan Consumer, the Investment and Industrial Development Corporation (Becamex), Binh Son Refining and Petrochemical Corporation (BSR), FPT Online, PetroVietnam Oil, Masan MeatLife and Viettel Post.

The companies’ shares reacted well to the news. ACV and FPT Online shares jumped 4.3-4.6 per cent on Thursday, while shares of Viettel Global, PetroVietnam Oil and VEAM gained between 0.8 per cent and 1.5 per cent.

The secondary market tracker UPCOM-Index inched down 0.16 per cent to end Thursday at 55.45 points. The index has lost a total of 1.37 per cent since the market’s post-Tet (Lunar New year) reopening on January 30.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange has plunged a total of nearly 10 per cent in the same period while the HNX-Index on the Ha Noi Stock Exchange has shed about 8.23 per cent. — VNS

Foreign investors buy net $2 million on UPCoM in January

Foreign investors buy net $2 million on UPCoM in January

Foreign investors in January bought a total net value of VND46 billion (nearly US$2 million) worth of shares on the Unlisted Public Company Market (UPCoM).  

Flurry of activity upcoming in M&A

Flurry of activity upcoming in M&A

More Singaporean investment is expected to flow via mergers and acquisitions (M&A) in the months to come in Vietnam, focusing on finance, property, and fintech.

 
 

Other News

.
Vietnam works towards responsible, sustainable fishery sector
Vietnam works towards responsible, sustainable fishery sector
BUSINESSicon  09/10/2021 

Vietnam’s fishermen, businesses and government have joined hands in implementing fishing regulations, in a bid to have the European Commission (EC)’s illegal, unreported and unregulated (IUU) fishing “yellow card” removed. ​

Which bailout package for the economy will be passed?
Which bailout package for the economy will be passed?
FEATUREicon  09/10/2021 

Minister of Planning and Investment Nguyen Chi Dung has been assigned a difficult task – drafting a program on recovering and developing the economy in association with improving economic autonomy in 2022-2023.

Wind and solar power: race to exploit endless resources
Wind and solar power: race to exploit endless resources
FEATUREicon  08/10/2021 

In the Draft Power Development Planning 8, one of the power source scenarios with the highest scores is the development of power sources associated with renewable energy under Resolution 55 of the Politburo.

Military Bank named among ‘Best Companies to Work for in Asia 2021’
Military Bank named among ‘Best Companies to Work for in Asia 2021’
BUSINESSicon  08/10/2021 

The Military Commercial Joint Stock Bank (MB) on October 8 received the "Best Companies to Work for in Asia 2021" award by HR Asia, a leading HR magazine in Asia.

Vietnam’s steel group in the world’s top 15 for market capitalization
Vietnam’s steel group in the world’s top 15 for market capitalization
BUSINESSicon  08/10/2021 

Hoa Phat Stee Group of billionaire Tran Dinh Long has entered the world's top 15 corporations in terms of market capitalization.

Apparel industry struggles to reach export target this year due to COVID-19
Apparel industry struggles to reach export target this year due to COVID-19
BUSINESSicon  08/10/2021 

The domestic textile and garment industry is likely to not reach its goals in production and business due to the strong impacts of the COVID-19 pandemic, according to the Vietnam Textile and Apparel Association (Vitas).

Economic momentum in 2021 takes a knock
Economic momentum in 2021 takes a knock
BUSINESSicon  08/10/2021 

Prolonged social distancing in many localities have led to lower-than-expected economic growth for the first nine months, but with the accelerated vaccine rollout, the economy is expected to gain growth momentum soon.

VIETNAM BUSINESS NEWS OCTOBER 8
VIETNAM BUSINESS NEWS OCTOBER 8
BUSINESSicon  08/10/2021 

Personal demand for deposits drops sharply

Proposal to resume flights from/to major cities from October 10
Proposal to resume flights from/to major cities from October 10
BUSINESSicon  08/10/2021 

The Vietnam Aviation Business Association (VABA) has proposed centrally-run provinces and cities agree on a plan to resume regular commercial passenger flights, especially those from/to Hanoi, Da Nang and HCM City from October 10.

Pig farmers incur losses, pork shortage for Tet holiday possible
Pig farmers incur losses, pork shortage for Tet holiday possible
BUSINESSicon  08/10/2021 

With the current low prices, farmers will take a loss of VND2 million when selling a pig. If the prices keep decreasing, farmers will give up farming, resulting in pork shortage for Tet (lunar New Year) sale season.

Nike Group to expand investment in Binh Duong
Nike Group to expand investment in Binh Duong
BUSINESSicon  07/10/2021 

Sportswear giant Nike Group has affirmed that it will continue to expand production in Binh Duong province, said Nguyen Thanh Toan, Director of the Department of Industry and Trade of the southern industrial hub.

Smartphone market narrows, IoT opens up
Smartphone market narrows, IoT opens up
FEATUREicon  08/10/2021 

When VinSmart announced the withdrawal from the smartphone market, Nguyen Tu Quang, CEO of BKAV Corporation, the manufacturer of BPhone, showed his regret.

VIETNAM BUSINESS NEWS OCTOBER 7
VIETNAM BUSINESS NEWS OCTOBER 7
BUSINESSicon  07/10/2021 

First three wind-power plants put into use in Soc Trang province

USAID funds US$2 million to improve Vietnam’s innovation workforce
USAID funds US$2 million to improve Vietnam’s innovation workforce
BUSINESSicon  07/10/2021 

The two-year USAID-funded project is expected to support the nation’s strategy on the fourth industrial revolution to advance continued economic transformation./.

Vietnamese enterprises need cash to revive
Vietnamese enterprises need cash to revive
FEATUREicon  07/10/2021 

Nguyen Quoc Ky, Chairman of Vietravel, a big tourist company in Vietnam, said that due to the impact of the 4th wave of Covid-19 epidemic, the entire tourism industry of Vietnam has been closed since May 2021.

Business associations unhappy with weekly tests for vaccinated, recovered workers
Business associations unhappy with weekly tests for vaccinated, recovered workers
BUSINESSicon  07/10/2021 

Several business associations in HCM City have called for scrapping a requirement that workers commuting to the city from elsewhere need to undergo a weekly test for COVID-19 regardless of their vaccination or recovery status.

Govt' to consider zero-interest loans for all airlines
Govt' to consider zero-interest loans for all airlines
BUSINESSicon  07/10/2021 

The Vietnam Aviation Business Association asked the Government to consider a proposal to slash 30 per cent off the airlines' income tax for 2020 and the first half of 2021.

Vietnamese businesses to overcome challenges
Vietnamese businesses to overcome challenges
FEATUREicon  07/10/2021 

Ho Chi Minh City and 18 southern provinces are gradually resuming business and production activities after a long time of lockdown. 

90,000 businesses get stuck, others need VND100 trillion
90,000 businesses get stuck, others need VND100 trillion
FEATUREicon  08/10/2021 

Businesses need loans without collateral and a simple procedure which allows them to access bank loans soon or they will die before they get the money.

Incurring big losses, café chains shut down
Incurring big losses, café chains shut down
FEATUREicon  07/10/2021 

The Covid-19 pandemic, with changes in consumers’ habits and requirement on a minimum distance between customers, has dealt a strong blow to the (food and beverage) F&B industry.

 
 
 
Leave your comment on an article

OR QUICK LOGIN