Stocks recovered in two weeks, the market waited for a new trading system for 10 years

Recovering from a drop

Committee Stock The State (SSC) has just held a conference on directing and operating in the first 5 months of 2022 and implementing key tasks in the coming time. Deputy Minister of Finance Nguyen Duc Chi – who was temporarily assigned to be in charge of the Securities Commission after former chairman Tran Van Dung was dismissed – chaired and moderated the conference.

According to the Securities and Exchange Commission, at the beginning of 2022, the stock market grew in the first time and then plummeted in both scores, stock prices, liquidity, etc.

Sharing the same trend of fluctuations of the world stock market and the psychological impact of some domestic factors, the VN-Index at one point dropped sharply to less than 1,200 points, from the peak of more than 1,500 points established in January/January. 2022.

However, thanks to many positive and timely solutions of state management agencies, investor sentiment has been improved and in fact, the stock market has recovered quite positively in the last two weeks of May. 2022.

Facing the recent strong fluctuations of the stock market, the Securities Commission has drastically implemented solutions to ensure the safe and stable operation of the market, such as assigning the Vietnam Stock Exchange (VNX) to direct the Stock Exchange. Ho Chi Minh City (HoSE), Hanoi Stock Exchange (HNX) requires listing organizations and organizations to register for trading within 24 hours from the time the share price rises to the ceiling or decreases production from 5 consecutive sessions. continue to report and disclose information related to the company that affects stock price movements.

The Securities and Exchange Commission also requires the Stock Exchange to disclose information on proprietary trading transactions of securities companies (securities); adjusting the final settlement price of the VN30 index futures contract on the expiration date; directing the Vietnam Stock Exchange and the Vietnam Securities Depository Center (VSD) to study technical solutions to block transactions of major shareholders and insiders who do not disclose information before trading;… .

Testing the KRX system after 10 years

Deputy Minister of Finance Nguyen Duc Chi acknowledged the results and efforts of the Securities Commission in the first 5 months of the year, especially the drastic, timely and effective implementation of urgent measures to reassure investors’ sentiment. investment, support the stock market to soon stabilize again.

Mr. Nguyen Duc Chi requested, the Securities Commission should quickly overcome and complete the shortcomings and limitations, ensuring the market management and administration more effectively, creating conditions for the stock market to develop stably. , transparent, safe.

The Deputy Minister of Finance said that, with the movements of the stock market, although there has been a positive recovery in recent weeks, both in the medium and long term, it is still supported by macro fundamental factors, as well as weak economic growth. internal factors of the market, but the global context is facing many challenges and unpredictable fluctuations. Therefore, it is necessary to continue to closely monitor and strengthen forecasting to proactively take measures to support the stable development of the stock market.

Also at the conference, Deputy Minister Nguyen Duc Chi requested units that need to urgently review and study legal regulations and mechanisms and policies from now until the end of the year, and promptly propose the Ministry of Finance to submit proposals to the Ministry of Finance. grant amendments and supplements to ensure compliance with the development reality of the stock market, especially over the past 2 years of Covid.

He also noted that it is necessary to strengthen the management and supervision of activities of securities trading organizations, to ensure that these organizations operate in a healthy manner, in accordance with the law, thereby actively promoting their role as intermediary providing services and products on the stock market.

At the same time, it is necessary to step up the supervision of the stock market, improve the role of supervisors at all levels, especially the frontline supervisors, to promptly detect transactions with abnormal signs. For public companies, closely monitor information disclosure, especially financial information, audited financial statements as well as correct and enhance the quality of audit work. Review, inspect and take measures to promote and handle violations of enterprises that do not comply with regulations on equitization associated with listing/registering for transactions on the stock market.

Speeding up the testing process, soon completing the Korean contractor’s KRX information technology system to put it into operation, creating conditions for the deployment of new products and services for the stock market. The Vietnam Stock Exchange studies and perfects the supervision criteria system, builds a warning system for securities transactions with abnormal signs; at the same time, research and propose to amend some criteria of VN30 index.

Regarding the upgrade of the stock market, the SSC continued to complete the criteria, proactively proposed to the Ministry of Finance to discuss and work with relevant ministries, branches and agencies so that the Vietnamese stock market could soon be considered for upgrade. from frontier to emerging markets.

In addition, the Securities Commission should strengthen the inspection, examination and handling of violations to ensure discipline and discipline in the stock market; When detecting signs of violations with criminal elements, it is necessary to be proactive and closely coordinate with functional agencies to strictly handle violations in the market.

The KRX system project started at the end of 2012, after HoSE signed an information technology service contract with the Korea Stock Exchange (KRX) to deploy a bidding package worth about 600 billion VND. However, for nearly a decade, HoSE has not been able to run this system.

M. Ha