Vietnam set to launch new stocks trading system in bid for market upgrade
HANOI: Vietnam is readying the begin next week of a brand unusual shares trading blueprint that will bustle up settlement of transactions, as portion of reforms aimed at upgrading the country’s stock market and attracting more foreign shoppers.
The transfer, if efficiently performed, would increase the possibilities of the South east Asian nation being reclassified as an emerging market. Each and each the MSCI and FTSE indices currently classify Vietnam as a frontier market, combating many funds, family locations of work and others from investing in corporations listed there.
Iklan
A brand unusual stock trading blueprint equipped by the Korea Exchange has been tested for months and is anticipated to jog are living on Can also fair 2 after securities corporations full the switchover from the frail blueprint all through a 5-day public vacation interval starting up at the closing of industry on Apr 26, per a legend sent to brokers by Vietnam’s major Ho Chi Minh Metropolis substitute and viewed by Reuters.
The bourse did now not straight away reply to a attach a query to for comment.
The unusual blueprint will take care of the settlement of transactions inner a day, speeding up operations and facilitating trading, especially quick selling, which turn out to be as soon as hampered by the most up-to-date slower blueprint.
Here is portion of reforms that can even result within the enhance of the market. FTSE can even glean a certain announcement as early as September, with an enhance for Vietnam to be performed by next year, officials occupy acknowledged. The enhance by MSCI is anticipated to rob longer.
Ultimate year the World Bank estimated that upgrades can even trigger receive inflows of between US$5 billion and US$25 billion to the US$200 billion market by the quit of the last decade. Vietnam’s benchmark stock index has risen 4.5 per cent to this level in 2024 nonetheless this month fell by bigger than 7 per cent.
Iklan
Key reforms wanted for the upgrades are less strict limits on foreign possession of listed corporations and the removal of a pre-funding requirement for shares transactions.
A public session on a brand unusual mechanism to address the latter hurdle will be performed within the second half of of Can also fair.
Source: Reuters
