|
As problems settled, stock market will move on: SSC
Tran Dac Sinh, Chairman of the State Securities Commission (SSC), believes that once the problems of the stock market can be settled, the stock market will surely bounce back.
What is your comment about the moves by the State Bank to resume the purchasing of foreign currencies and loosen securities loaning control?
First of all, I have to acknowledge that the VN Index dropped dramatically in recent months by 20-30%. It was because the central bank suddenly stopped buying foreign currencies and tightened securities loaning. As the result, foreign investors could not buy VND to make transactions, and this badly affected domestic investors as well.
However, as you may know, the said problems have been settled as the central bank has begun resuming the purchase of foreign currencies and loosening securities loaning control. I do believe that the measures to stimulate the market’s demand will show active impacts in the time to come.
Some experts said that the stock market watchdog seems to get confused in drawing up the strategies which aim to the long term and sustainable development of the market. They said that the agency just focuses on settling problems instead of preventing risks. What would you say about the comment?
Vietnam’s stock market remains very young. People have every reason to require the long term policies which aim at sustainable development. However, it is really a difficult task. The biggest challenge for us is that our policies must aim to two goals: curbing inflation and ensuring high economic growth.
Do you think that it is necessary to reduce the supplies as the commodities now prove to be oversupplied?
I think that it is necessary to stimulate the demand and increase the supplies at the same time. I don’t think that it is necessary to raise demand and reduce supplies. In fact, the supplies of commodities are not as profuse as people think.
It is understandable why people think that the commodities are oversupplied. It is because the central bank had tightened securities loaning, which had resulted in the lack of capital for securities investments. A lot of IPOs ran successfully, where shares went for good prices, while other IPOs failed due to the bad business performance and high share prices.
However, I have to acknowledge that it was partially because a lot of IPOs were made at the same time, while investors could not arrange much money for all the investments.
If Incombank, BIDV and MobiFone make IPO in the same month, investors would not have enough money to buy all the shares. However, it is very difficult to set up timetable for the IPOs, because the IPO process depends on many factors.
What do you think will happen after the central bank loosens the securities loaning control?
In fact, the capital provided by commercial banks to fund securities investments is not big. However, the problems lies in the fact that investors tend to watch what the state management agencies will do to decide where to inject their money. For example, they will inject money in the real estate market or gold if they markets can bring fatter profit. Once the central bank loosens securities loaning control, securities investors may decide to increase the investments in the stock market instead of other investment channels.
VNN
|
