Kinh tế

Building a transparent capital market

Banks and securities companies are currently the largest investors in the bond market. This cash flow really supported the bond market. It can be seen that banks are the main institutions creating the corporate bond market, contributing to the increase in both quantity and quality of commodities traded on this market.

In 2021, VND 373,000 billion of corporate bonds were purchased by banks and securities companies.

Banks alone have invested 274,000 billion VND to buy corporate bonds. Thus, 73% of corporate bond money was absorbed by banks. Circular 16 of the State Bank, effective from January 15, has slowed down this amount of money pouring into the corporate bond market.

Building a transparent capital market - Photo 1.

Banks and securities companies are currently the largest investors in the bond market. (Illustration image – Photo: Labor)

“As of the end of March, there were only 10 issuances of bonds with a value of about 2.1 trillion dong. I think that even in the long-term, the markets will grow, but there are always corrections. These adjustments are often associated with problems that are then resolved to move towards a more transparent and efficient market”, said Mr. Nguyen Tung Anh, senior credit risk researcher, FiinGroup , said.

As for the issuer, by the end of March 2022, credit institutions have issued 427,000 billion dong of corporate bonds. Thus, credit institutions are the second largest bond issuers in the corporate bond market.

“Banking, credit, stock market and bond markets need to function properly to lead these capital sources into the real operation of the economy in the most effective way,” he said. Le Duy Binh, an economist at Economica Research Company, said.

Therefore, in order for the corporate bond market to have conditions to develop, the coming policies need to create a mechanism to monitor cash flow and capital flow in a more transparent and strict direction, instead of tightening development conditions. global action.

“The International Monetary Fund (IMF) very much welcomes the efforts of the Government of Vietnam in increasing openness and transparency in order to strengthen market regulation and improve supervision overall. This is really true. help the long-term development of capital marketimproving protection of the interests of investors, including individual investors and other retail investors”, Ms. Era Dabla Norris, Asia-Pacific Department, International Monetary Fund (Mr. IMF), reviews.

Currently, the Government has directed the Ministry of Finance and relevant ministries and branches to build and complete the legal corridor, and submit to competent authorities for promulgation appropriate, effective, and not too strict mechanisms, institutions and policies. strictly, not too loosely to protect genuine and responsible investors in the capital market.

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