Vietnam - VND84 trillion flows into stock market in first 6 months

Capital invested in the stock market has doubled that of the same period in 2011, but the amount invested on issuing shares has reduced 50%.

The State Securities Commission of Vietnam (SSC) declared that in the first six month of 2012, it has granted licenses for 16 companies to issue 580 million shares worth VND5,468 billion (USD261.3 million).

Total funds invested in the stocks, shares and government bonds reached VND84 trillion (USD4 billion), double the same period in 2011.

SSC has organised nine auctions in two stock exchange departments with total shares offered valued at VND206 billion (USD9.8 million). 82 governmental bonds bid sessions were held with total bid value reaching VND78.8 trillion (USD3.7 billion), a 3.5-fold increase over the same period last year.

According to SSC’s report, among 66 securities companies suffering from losses in the first quarter of 2012, 12 companies incurred serious losses worth more than 50% of their registered capital, 27 companies had negative equity, over 50% of their legal capital.

In the first six months of the year, SSC ceased granting operating licenses, terminated the operation of two representative offices, and put seven securities companies under strict control.

It also applied 67 administrative sanctions to individuals and institutions with total fines worth VND3,922 billion (USD187.4 million).

SSC planned to draft standard codes to classify securities companies and better deal with risk management to enhance the quality of securities companies.

Restructuring the governmental bonds market and pushing treasury bills into stock market exchanges also are part of its plans.

Since September 4, it will shorten the billing cycle to hasten cash flows and attract more short-term capital.

Dtnews

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