Determined to clean and healthy the financial market

Notably, this week, the Securities Commission decided to cancel 9 bond offerings from July 2021 to March 2022 with a total value of VND 10,030 billion of companies under Tan Hoang Minh Group. .

Many big questions were raised by the newspapers after this move to cancel 9 rounds of illegal bond issuance.

Borrowing trillions from illegal bond issuance: What are the responsibilities of the parties?

Sheet Tien Phong Previously, many times, the State Bank, the Ministry of Finance, the Ministry of Construction and experts had warned about the risks when investors massively poured money to buy high-yield bonds of foreign investors. Issued by real estate companies, especially when many bonds are unsecured.

Investors need to know important information related to bonds. (Artwork – Photo: VGP)

There are newspapers Youth Want to know how the customer will be refunded? This group said, for contracts that are due for payment, the investment amount of customers will be refunded as soon as possible. However, banking experts said, it is not known when the buyer will receive his money back when the ability to mobilize new funds to pay the old loan has been blocked and the bond worth VND 10,000 billion is canceled is not a child. small number.

In fact, the mobilization of bonds by real estate businesses has exploded 3 – 4 years ago and in the last 2 years. The interest rate of 11 – 12% is clearly irresistible, especially when compared to the bank’s savings interest rate, which is only around 5 – 6%/year. However, high profits also come with high risks and the fact that authorities have warned about these investments.

Who protects investors?

However, newspaper People’s Deputies commented that: “Warning alone is not enough! The responsibility of state management agencies must be more than that, especially in building “infrastructure” for corporate credit rating – the problem is really very serious. necessary at this time to protect investors. Investors urgently need transparent ratings, clear criteria to assess the health and repayment capacity of bond issuers.”

In fact, bonds are an effective medium and long-term capital mobilization channel, helping to reduce the burden of capital mobilization through banking channels, but experts say that because it is in its infancy, it feels like the past time. market quite chaotic.

Revealing the “hole” in the bond market after the Tan Hoang Minh case

Especially, after the cancellation of VND 10,000 billion of bonds, the bond market’s vulnerability became even more obvious.

According to Traffic Newspaper, The flaw here is that for many years, banks and securities companies participating in the bond market have not taken credit risks.

After the primary purchase, the bonds are split and sold to individual investors. Because of the split and sale, the health of the issuer is not appraised and individual investors buy it secondary, so if there is any risk, they will bear it all.

Correction of corporate bond market operations and land use right auctions

In the latest move, this week, Deputy Prime Minister Le Minh Khai signed the Official Letter of the Prime Minister on the rectification of the corporate bond market and the auction of land use rights.

In this dispatch, the Prime Minister assigned each specific task to the Ministry of Public Security, the Ministry of Finance, the Ministry of Natural Resources and Environment, the State Bank of Vietnam and the presidents of localities to focus on inspecting and developing current violations in the issuance and investment of corporate bonds as well as handling of violations in land auctions, preventing acts of taking advantage of auctions to make profit and destabilizing the market.

The bond market is an effective channel of capital mobilization as well as an investment channel. So what measures should be taken to make this market healthy?

Strengthening the bond market

According to the newspaper’s comment Workers, state management agencies need to strengthen many measures to check, check and control, to avoid enterprises taking advantage of loopholes to hide information or use cash flow wrongly with published content; In particular, it is necessary to supplement regulations and conditions for private bond issuers and unlisted enterprises to want to issue bonds in order to keep the market safe and ensure the interests of investors.

What about magazines? Business Forum That said, investors need to understand important information related to bonds, including: the commitment of the issuer to the bond, the issuance term and method of paying the principal and interest, and the bond. secured or unsecured assets; should buy bonds of listed companies because of their more stable financial capacity and easier to grasp information.

The prosecution and detention of a number of business leaders in the stock and real estate markets over the past time have really shown their determination to clean and healthy the financial market. This determination does not affect the psychology of investors, on the contrary, many newspapers say, it also helps investors believe more in the effective and timely management and administration of the regulatory agencies. physical.

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