Unblocking and clearing capital flows
Faced with the unpredictable fluctuations that the stock market has experienced from 2020 to present, the Talkshow "Unblocking capital flows in the stock market" aims to remove difficulties for listed enterprises, stimulate capital flows in the stock market effectively in the new context, and at the same time, allow the investor community to seek investment opportunities, see the stock market as a place to make profits and increase assets.
Accordingly, referring to the current situation of newly listed enterprises (IPO) on the market, Ms. Ta Thanh Binh, Director of the Department of Securities Market Development, said that since the beginning of the year, the State Securities Commission (SSC) has only received 5 IPO dossiers, while the offering and registration dossiers are also being supplemented, but both decreased by about 45% compared to the same period in 2022, and new issuances are only 40% compared to the previous year.
Ms. Binh emphasized that in order for businesses to be able to quickly raise capital in the market, reduce procedures and not miss opportunities for offering, listed businesses need to have long-term plans, strategies, detailed and appropriate capital usage plans, meeting the requirements of transparency and clarity to avoid wasting time for appraisal by management agencies as well as missing opportunities for businesses.
Further emphasizing the importance of the securities mobilization channel, Mr. Nguyen Vu Long, Chairman of VNDirect Securities Company, said that securities are a great issuance channel for businesses, however, violations in the past have broken this capital mobilization channel. Therefore, it is necessary at this time to rebuild the securities channel to support businesses in finding capital sources, while building the capacity to mobilize capital in the stock market.
Talkshow Overview.
In addition, the sustainability of the market depends largely on the management agency, the State Securities Commission and the Government need to have strict and transparent policies to stabilize the market and create a stock market that attracts domestic investors and foreign capital.
Regarding foreign capital flows, Mr. Dang Thanh Tam, Chairman of Kinh Bac Urban Development Corporation - JSC (KBC), realized that capital flows from financial institutions will be more sustainable, with better goods. However, domestic and foreign individual capital flows account for the majority, and if policies are more favorable and automated, this cash flow can grow stronger.
Apart from macroeconomic policies, the most important thing in the market is still confidence. At the end of 2022, market confidence declined both domestically and internationally.
“For my business, when securities companies suddenly cut margins, and the time to fix it is short, this invisibly leads to the phenomenon of short selling of stocks in the market,” said Mr. Dang Thanh Tam.
Therefore, Mr. Tam hopes that the management agency has some specific policies, mechanisms, and regulations on when it is possible to inject more capital and borrow more money so that businesses can promptly handle the situation, or the State Bank can support securities companies to have additional sources to support businesses as soon as possible.
Building investor confidence
Currently, the number of newly opened accounts has also increased continuously in recent months, liquidity tends to increase, this shows that investors are still sticking around and have not left the market.
Mr. Vu Duc Tien, General Director of Saigon - Hanoi Securities Company (SHS) suggested to investors that when seeing safer and more positive signals, investors should disburse in May and June, when the Government has issued economic stimulus packages and fiscal solutions to support businesses.
Similarly, Mr. Nguyen Vu Long, Chairman of VNDirect Securities Company, also acknowledged that investors' confidence in the market is not simply based on policies and macro-economics, but also depends on the businesses themselves.
Mr. Nguyen Vu Long, Chairman of VNDirect Securities Company.
In addition, he recommended that the policies issued by the management agency should be consistent, have clear messages, and be consistent from all levels from the Government to ministries and branches so that foreign investors can rely on them and choose investment options.
As for domestic investors, Mr. Long believes that investors always need to observe variables that they cannot control, such as the fact that the Vietnamese economy cannot boom too much when the world economy is still in difficulty, inflation in the US is still too high and political conflicts are escalating.
Therefore, investors need to observe to choose the right investment position. In addition, they need to understand when using financial leverage tools and must see the risks when using those tools.
This is the stage when the market begins to recover, investors begin to have more confidence, but the macro variables are still too complicated, investors should be cautious enough. To reduce short-term risks of the market, investors need to have a longer-term view, change their investment approach to get higher profits, Mr. Long said .
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