The number of institutional investors is modest, the stock market is not sustainable.

DNVN - Sharing at the July dialogue with the theme "Upgrading, calling for capital and developing institutional investors", on the morning of July 19, Deputy Minister of Finance Nguyen Duc Chi said that the number of institutional investors in the stock market is still modest. This is a weak and unsustainable point of the market.

According to Deputy Minister Nguyen Duc Chi, if the stock market wants to achieve high quality and sustainable development, institutional investors must account for a large proportion of the investor structure. Currently, the stock market has a large capitalization scale, the number of investor accounts opened is nearly 8 million accounts.

However, looking at the structure and accounts, the number of institutional investors is modest, the figure given by FiinGroup shows that foreign investors hold 14% of shares. This is a weak and unsustainable point of the market.

Therefore, it is necessary to promote the development of the number of institutional investors in the market. First of all, it is necessary to change the awareness and psychology of Vietnamese investors. That is, everyone likes to manage their own assets, likes to invest in stocks themselves. The capacity, level of awareness, and psychology of the crowd are easily attracted.

Deputy Minister Nguyen Duc Chi said that if the stock market wants to develop sustainably, institutional investors must account for a large proportion.

“We cannot change overnight. In addition to media training and investors paying the actual price in the market, we hope that investors and those with capital in Vietnam will change their perception to make investments through professional investors.

"If you have a professional organization, it is not necessary to have 8 million securities accounts, but only 5-6 million, but if half of them are institutional investors, that would be great," said Mr. Chi.

As of the end of June 2024, the stock market capitalization on all three exchanges HOSE, HNX and UPCoM reached more than 7 million billion VND (about 280 billion USD), equivalent to 69% of GDP.

The average transaction value from the beginning of the year to date has reached VND24,598 billion, equivalent to nearly USD1 billion/session; an increase of 39.9% compared to the average of the previous year. The market has attracted an ecosystem of domestic and foreign investors with over 8 million accounts.

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Source: https://doanhnghiepvn.vn/kinh-te/chung-khoan/so-luong-nha-dau-tu-to-chuc-khiem-ton-thi-truong-chung-khoan-chua-ben-vung/20240719023849757