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Securities commission acts to restore market balance
The State Securities Commission (SSC) is taking a series of measures to ease the over-supply and stimulate demand with the aim of restoring balance in the stock market.
At a meeting in Ha Noi on January 15 to review market performance in 2007 and seek measures to develop the market, the SSC said the current market imbalance is caused by a great number of IPOs over a short period of time. Adding to this, many businesses tend to issue large numbers of additional shares towards the year-end, resulting in an over-supply that pushed the market downward recently.
The establishment of new banks and the heating up of the real estate market were also blamed for the stock market slide as they absorb a major amount of capital.
To deal with the problem, the SSC has asked the Finance Ministry of reschedule the IPOs of several businesses, including the Industrial and Commercial Bank (Incombank) and the Ha Noi Alcohol Beverage Corp. (Habeco).
The commission will also create favourable conditions for organisations and individuals to set up investment funds, allow State-run enterprises to use non-State capital to invest in the stock market and combine financial policies to better control the money flow in the market.
Deputy Finance Minister Tran Xuan Ha suggested that the SSC draft a decree on separate issuance and work to curtail the free market to help the official market’s sustainable development.
He added that relevant agencies should work out more flexible management policies for the monetary market.
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