The real estate market will be affected by the cash flow of securities
At the seminar: “Opening up capital flows for Vietnam’s real estate market” organized by the Vietnam Real Estate Association, Realtimes and VIRES, according to Assoc. Dr. Tran Kim Chung, Former Deputy Director, Central Institute for Economic Management, the real estate market is moving from development to financialization and has many prospects and challenges in attracting capital. . Two of the important capital sources of the market to focus on are capital from stocks and bonds.
Currently, there are more than 8 capital flows pouring into the real estate market, including: Bonds, stocks, investment trusts, and re-mortgage – a tool that makes money grow at a rate of 1/discount rate , mutual funds, timeshares, long-term financial institutions and other instruments.
“If these 8 capital flows are operated smoothly, the real estate business will have enough capital (in addition to the available capital) to develop.
Saying these things to show us that talking about the development of bonds and stocks is not outside the trajectory of capital flow development of the real estate market,” said Mr. Chung.
According to Mr. Chung, on the impact of bond capital, firstly, directly finance the real estate market through bonds of real estate projects and real estate enterprises. Second, the potential source of capital for the real estate market through capital increase for the market. From there, finance the real estate market as a part that needs capital. Third, capital disputes with the real estate market. If the real estate market is not attractive enough, bond money will move to other markets. As a result, the real estate market was sucked away by bonds. This is a source of trust mortgage capital for investors to buy.
Regarding the impact of capital from stocks, first of all, directly finance real estate businesses through shares of real estate enterprises. Second, is the source of capital for the real estate market when taking profits in the stock market and operating it to other markets, including the real estate market. Third, become a competitor to attract capital when the market is attractive. Fourth, as the subject of capital attraction of the real estate market when the stock market is in trouble, must attract capital to make up the shortfall.
Assoc. Dr. Tran Kim Chung, Former Deputy Director, Central Institute for Economic Management.
The scale of the value of primary bond issuance in the first nine months of 2021 reached VND 430,000 billion, up 27% over the same period last year, of which, the real estate group alone issued VND 172,000 billion, accounting for 40% of the total value. release to the whole market. Therefore, the real estate group is considered to be most affected by Circular 16 when it officially takes effect on January 15, 2022.
However, there are still shortcomings of capital from operating shares in the current real estate market:
Firstly, the strong fluctuation of the stock market makes the money flow between the stock market and the real estate market unstable. After peaking at 1500, the market made a big correction. At one point, the market dropped below 1300.
Second, after the peak, the stock market declines, under the influence of the market’s reaction, it is possible that the real estate market will be affected by cash flow from the stock market. The stock market, after a number of correction sessions, has lost a certain amount of value.
Third, some activities of some enterprises on the stock market have violations. This affects not only the business itself but also the stock market in general and the real estate securities group in particular.
Accordingly, the expert also offered some solutions for bond and stock capital:
First, review the documents related to the issuance of bonds and real estate stocks to complete the documents on the issuance of stocks and bonds in general and real estate bonds and stocks in particular.
Next, the organization strictly implements legal documents. The review is necessary, however, it must still be oriented to promote the development of real estate bonds and stocks.
Finally, severely sanction the implementation and violations. Ensure the bond and stock markets operate in a healthy manner but still provide enough capital for the economy in general and the real estate market in particular to have enough capital for development.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
