VietNamNet Bridge – The State Securities Commission (SSC) is revising Decree 58/2012 guiding the Securities Law to increase the foreign ownership limit at listed enterprises, especially at the firms where the State holds no controlling stakes.

SSC chairman Vu Bang said at a review conference on the stock market development in Hanoi on February 2 that if the draft decree was approved in the second quarter of this year, it would help attract foreign capital into the market.

SSC wants to create favorable conditions for foreigners to get involved in sectors that are not off-limits to foreign investment. It also considers allowing foreign investors to own 50-100% stakes at local securities companies this year.

In addition, SSC is reviewing regulations on foreign ownership ratio at stock trading organizations. Maybank Kim Eng Vietnam is the only 100% foreign-owned securities firm in the country at the moment.

Domestic securities enterprises would receive support to open representative offices and branches abroad, according to SSC.

SSC will work with the central bank to implement Circular 36/2014/TT-NHNN on lending rules governing stock investments. The two sides will monitor capital going to the stock market from banks to ensure safety for the banking system and boost development of the market.

According to SSC’s report, the VN-Index stood at 545.63 points and the HNX-Index at 82.98 points at the end of last year, up 8.1% and 22.3% respectively against the year earlier.

The stock market’s capitalization totaled VND1.12 million billion (US$52.5 billion) last year, accounting for 31% of Vietnam’s gross domestic product (GDP) in the same year and VND172 trillion higher than the previous year.

Liquidity on the market improved remarkably with the average trading value per session exceeding VND5.5 trillion last year, double the figure in 2013.

Speaking to the Daily on the sidelines of the conference, Bang said SSC would speed up the restructuring of the stock market with a focus on stock trading organizations. It is preparing for the launch of a derivatives market.

Bang said in the coming time, State-owned enterprises as well as private firms wanting to list on the stock market must abide by regulations on financial and management reports.

SGT