Kinh tế

Stocks continue to plunge, what will the Securities and Exchange Commission do?

The stock market (stock market) has experienced a very strong downward correction since the beginning of April until now. As of May 12, the VN-Index closed at 1,238.84 points, having lost 285.86 points, equivalent to a decrease of 18.7% compared to the peak set on April 4, 2022. Along with the index, market liquidity tended to decrease continuously during this period, the average trading value in April reached 26,299 billion VND/session, down 15.6% compared to the average in the first quarter of 2022. In the early sessions of May, the liquidity only averaged 18,916 billion dong/session, down 28% compared to the previous month’s average.

Since the beginning of the year, foreign investors have net sold 1,950 billion dong on the stock market. However, foreign investors tended to be net buyers again in the last 7 weeks with a value of about 7,600 billion dong of shares and fund certificates. Regarding capital flows of foreign investors, from the beginning of the year to the end of April 2022, the daily block had a net withdrawal but the value was not large, only about 26 million USD. In which, foreign investors made a net withdrawal of $251 million in January and February but returned to a net of $225 million in March and April.

Stocks continue to plunge, what will the Securities and Exchange Commission do?  - Photo 1.

The stock market has experienced a very strong downward correction since the beginning of April until now (Artwork: KT)

Talking to the press, a representative of the State Securities Commission (SSC) said that the domestic stock market is going through a period of strong adjustment, due to the combined impact of domestic psychological factors and especially risks. Risks from international markets such as: FED raised interest rates sharply, unresolved geopolitical tensions, inflationary pressures, sharp increase in input prices, especially energy prices…

The leader of the State Securities Commission said that although Vietnam’s stock market is still highly expected to recover and grow again in 2022 and the following years, however, in the context of the market, there may still be strong fluctuations. , the regulator is giving special priority to short-term solutions to help stabilize the market and reassure investor sentiment. The State Securities Commission, the Stock Exchanges, and the Vietnam Securities Depository Center have also met with many market members and securities companies to assess the current situation of the market, as well as discuss solutions for both. short and medium term for the market to overcome difficulties and stabilize again. This year, there will be positive changes, which are expected to support the market to increase liquidity, as well as transparent information in the market.

We are closely monitoring the developments of the economic – political situation, policy movements of countries around the world, assessing the impact and influence on Vietnam’s stock market in order to promptly take appropriate solutions to stabilize the stock market. domestic. At the same time, actively propagate information in order to stabilize investors’ psychology, strengthen the confidence of market participants and the public investing at home and abroad in the determination of the Party, State and Government. Government and the Ministry of Finance in stabilizing the macro-economy, developing a transparent, public, safe and effective stock market.“, a representative of the State Securities Commission of Vietnam informed.

Efforts to make Vietnam’s stock market upgrade as soon as possible

As for medium and long-term solutions, leaders of the State Securities Commission said that the management agency is actively completing the legal framework for the stock market, completing the development of the stock market development strategy by 2030 to clearly define the goals, solutions and long-term stock market development roadmap.

At the same time, reviewing, evaluating and summarizing to recommend the shortcomings in the legal framework on securities and the stock market (including the Law on Securities and the system of guiding documents), especially These are regulations on transparency of corporate information, rights and responsibilities of participants, sanctions for violations of the law on the stock market to protect investors, thereby restoring confidence and ensuring the development of investors. healthy, transparent and sustainable development of the stock market.

In the coming time, we will have more solutions to improve operational efficiency, service quality, financial capacity, and professional ethics of service providers in the market, especially especially securities companies, independent auditing companies, fund management companies, operations of the system of asset valuation companies, credit ratings, accounting and auditing. Strictly manage and supervise, and at the same time facilitate and promote the role of these organizations to provide transparent, safe and effective services for both issuers and investors.“, the leader of the State Securities Commission added.

For foreign capital flows, in addition to solutions to attract the participation of foreign investors, the State Securities Commission is also accelerating solutions to shorten the process of upgrading Vietnam’s stock market from marginal to emerging.

Although, the upgrade will depend greatly on the market rating agencies, however, the State Securities Commission is coordinating with relevant agencies to agree on solutions, map out a clearer roadmap, and strive for the best. In order to hope that Vietnam’s stock market will be upgraded as soon as possible, achieving the target set by the Government”, the leader of the State Securities Commission confirmed.

In addition, it will strengthen propaganda and investor training to increase the knowledge base of finance and securities, and support investors to participate in the stock market more safely and professionally.

You are reading the article Stocks continue to plunge, what will the Securities and Exchange Commission do?
at – Source: – Read the original article here

Back to top button