Stock market liquidity in the third quarter of 2024 is gloomy - Photo: QUANG DINH
According to data from Fiintrade, margin lending balance reached over VND228,000 billion, up 4% compared to the previous quarter. The leverage ratio remained high, with margin debt over total market capitalization at 9.2%.
Highest ever securities lending scale
The above-mentioned outstanding debt has surpassed the record set in the second quarter of 2024 (nearly VND 219,000 billion). Even when the VN-Index reached a historical peak of 1,500, the margin was only nearly VND 185,000 billion (quarter 1-2022).
It is worth noting that outstanding loans continue to hit new peaks, but this does not help the market to be vibrant. Liquidity in the third quarter of this year is "sluggish" and individual investors have reduced their net buying, in the context of fierce net selling by foreign investors.
The size of lending in the whole market increased, but not evenly among securities companies. The margin lending race has seen the emergence of many names with "impressive" speed.
Like Vietcap (VCI), a securities company chaired by Ms. Nguyen Thanh Phuong, has just entered the "top" of companies with outstanding loans exceeding 10,000 billion VND.
The financial report shows that Vietcap's loans and receivables at the end of the third quarter of 2024 reached VND 10,111 billion, of which margin loans reached VND 9,950 billion, an increase of nearly 27% compared to the beginning of the year, but an increase of 77% over the same period.
Margin debt also unexpectedly increased sharply at some smaller securities companies such as DNSE (DSE), KAFI, and Lien Viet Securities.
Of which, DNSE's outstanding loans reached VND4,102 billion, up 65% compared to the beginning of the year. Not far behind, LPBank Securities' outstanding margin loans also increased from VND504 billion in the second quarter of 2024 to VND3,004 billion at the end of the third quarter. After only 3 months, this securities company has poured about VND2,500 billion into loans.
The increase of Kafi securities is even more "shocking", when the total outstanding loan balance reached 4,679 billion VND, 4.3 times higher than at the beginning of the year.
Kafi was previously a lackluster company and often made losses. However, since the end of 2021, the business situation has begun to change a lot when there was a major shareholder related to VIB .
Record margin, 'poor' liquidity
According to regulations, the total outstanding margin lending of a securities company must not exceed 200% of its equity. Currently, the ratio of outstanding margin lending/equity in the entire market is below 2 times, generally still at a safe threshold.
However, the value of margin lending continued to break the established record, but market liquidity in the third quarter of 2024 was still quite sluggish. In all 3 months, from July to September, the total transaction value in the market decreased continuously.
Notably, the group of individuals also reduced net buying, even continuously net selling in August and September. FiinTrade data also shows that the balance of investors' deposits waiting for transactions decreased for the second consecutive quarter, despite the number of newly opened accounts maintaining a strong increase.
Speaking with Tuoi Tre Online , Mr. Bui Van Huy - director of DSC Securities' Ho Chi Minh City branch - said that the increase in outstanding debt was mainly due to "deals", or negotiated loans.
Explaining more clearly about this form, Mr. Huy said that large investors and major shareholders of enterprises borrow by mortgaging stocks.
"The advantage is that the interest rate is relatively low and the procedures are easy for many businesses compared to bank loans. Margin loans only require mortgaging stocks in the securities company's loan portfolio," said Mr. Huy, adding that while borrowing from banks, many businesses do not qualify for loans, have run out of credit limits, or need collateral...
Regarding risks, Mr. Huy analyzed that when there are big fluctuations, it can cause cross "margin calls" like in 2022.
"Meanwhile, individual investors limit the use of margin when they see a lack of opportunities in the market," Mr. Huy commented, this makes the market liquidity poor.
Mr. Huy also said that the ability to supply margin is still quite large because a series of securities companies have increased capital recently.
Source: https://tuoitre.vn/la-ky-tien-cho-vay-choi-chung-khoan-nhieu-ki-luc-nhung-thanh-khoan-teo-top-2024102212543628.htm
![[Photo] Readers line up to visit the photo exhibition and receive a special publication commemorating the 135th birthday of President Ho Chi Minh at Nhan Dan Newspaper](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/5/17/85b3197fc6bd43e6a9ee4db15101005b)
![[Photo] More than 17,000 candidates participate in the 2025 SPT Competency Assessment Test of Hanoi National University of Education](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/5/17/e538d9a1636c407cbb211b314e6303fd)
![[Photo] Prime Minister Pham Minh Chinh chairs meeting on science and technology development](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/5/17/ae80dd74c384439789b12013c738a045)
![[Photo] Nearly 3,000 students moved by stories about soldiers](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/5/17/21da57c8241e42438b423eaa37215e0e)
Comment (0)