Stop enforcing the "loan ban" regulation
On June 28, 2023, the State Bank of Vietnam (SBV) issued Circular No. 06/2023/TT-NHNN, effective from September 1, 2023. However, businesses believe that Circular 06 has provisions such as Clause 8, Clause 9 and Clause 10, Article 8, which create "barriers" to cash flow into businesses.
The Ho Chi Minh City Real Estate Association (HoREA) believes that these provisions lead to a situation where some businesses in various sectors of the economy that need to borrow capital, including real estate businesses, home buyers, and real estate investors, will find it very difficult to access credit, and access to credit capital is a "lifesaver" to overcome current difficulties, because the corporate bond market is very difficult, while real estate businesses are also unable to mobilize capital from customers because projects are entangled in legal issues, so they cannot be deployed and implemented.
Immediately after the State Bank announced the suspension of the "loan ban" regulation in Circular 06, real estate and construction stocks simultaneously hit the ceiling, helping real estate companies make big profits. Illustrative photo
The Prime Minister requested the State Bank of Vietnam to urgently review and amend Circular No. 06/2023/TT-NHNN to suspend the implementation of difficult regulations, to be completed by August 25, 2023, to create favorable conditions for businesses and people to access credit capital.
On August 23, the State Bank said that in the context of the economy still facing many difficulties, in order to further prioritize promoting economic growth, the State Bank issued Circular No. 10/2023/TT-NHNN dated August 23, 2023, suspending the implementation of Clauses 8, 9 and 10, Article 8 of Circular No. 39/2016/TT-NHNN (supplemented by Clause 2, Article 1 of Circular No. 06/2023/TT-NHNN) from September 1, 2023 until the effective date of the new legal document regulating these issues.
In the coming time, the State Bank will coordinate with relevant agencies and units to research and consider appropriate solutions to control risks, ensure the safety of credit institutions' operations, and support in removing difficulties for people and businesses.
Real estate, construction earn big
When these regulations are suspended, real estate and construction are considered the industries that benefit the most. In the stock market session on August 24, real estate stocks all hit the ceiling, although some codes started the session with a slight decrease.
At the close of the August 24 stock market session, DIG shares of the Construction Development Investment Corporation hit the ceiling, up 1,750 VND/share to 26,900 VND/share. Notably, at the beginning of the session, DIG slightly decreased to 25,100 VND/share. DIG's market capitalization increased by 1,067 billion VND.
Two Dat Xanh stocks also closed the August 24 stock session in purple. DXG increased by VND1,300/share to VND20,200/share. DXS increased by VND700/share to VND10,800/share.
HBC shares of Hoa Binh Construction Group hit the ceiling and the market price regained the mark of 10,000 VND/share. Closing the stock session on August 24, HBC increased by 680 VND/share to 10,400 VND/share.
HTN shares of Hung Thinh Incons Joint Stock Company were also lucky to hit the ceiling at the end of the session despite trading in red at the beginning of the session. HTN increased by VND1,200/share to VND19,050/share.
Some other codes also closed the session in purple, such as SJS, ITC, L61.
Large-cap stocks in the real estate sector did not hit the ceiling but also improved quite strongly, thereby helping the VN-Index regain green soon.
At the close of trading on August 24, VHM increased by VND900/share, equivalent to 1.7% to VND55,400/share, VRE increased by VND300/share, equivalent to 1% to VND29,050/share. The market capitalization of Vinhomes and Vincom Retail increased by VND3,919 billion and VND699 billion.
On the Hanoi Stock Exchange, large-cap real estate stocks played a major role in helping the HNX30-Index have the strongest growth rate in the Asia-Pacific market.
CEO increased by 2,100 VND/share, equivalent to 8.8% to 26,100 VND/share; L14 increased by 3,100 VND/share, equivalent to 5.9% to 55,900 VND/share; HUT increased by 1,000 VND/share, equivalent to 4.2% to 24,900 VND/share; L18 increased by 1,400 VND/share, equivalent to 3.7% to 39,000 VND/share,….
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