|
Let stock market adjust itself: NA Deputy
Dinh Van Nha, Deputy Chairman of the National Assembly’s Finance and Budget Committee, said on the sideline of the ongoing National Assembly session that the stock market will correct itself.
Nha is optimistic about the stock market’s development, saying that listing companies, the most important factors of the stock market, are still performing well despite difficulties. He said that the biggest problem of the market now is the lack of experiences of investors.
Could you please tell us the viewpoint of the National Assembly’s Finance and Budget Committee on the current difficulties of the stock market?
We think that it is necessary to give the previously applied daily trading bands back to the market, because we should let the market adjust itself.
Lately, the US stock market fell sharply due to the difficulties of the country’s economy, but it recovered after that. It is because its market is the market of experienced investors. Meanwhile, Vietnamese investors lack experience in using their capital.
What will happen if we recover the previously applied daily trading band? Do you think that the market will drop more sharply?
Let’s imagine that securities companies and investment institutions make a lot of investment deals. The daily turnover would not be enough for them to pay for the management. Therefore, they may expect the market to go down further, so that they can ‘take on’ shares at low prices.
When they take on shares, they will create a new investment wave. If so, the companies will be the market creators. The market will not exist if there is not a willingness to buy commodities.
You have mentioned the ‘market creators’. Do you think that the current falls originate from them?
Yes, I do. The big investors themselves also lack experience and patience, and they made unprofessional investments. When they saw their capital decrease in value, they sold shares like other small investors. As a result, both big and small investors were trying to sell shares.
In fact, even institutional investors also do not have much experience and capital. They also think that the stock market is the investment channel where they can earn profit quickly, while they do not think that they should aim at sustainable growth.
Do you think that state management agencies have been setting too easy requirements in licencing big institutions and investors?
No, not actually. This is a kind of conditional business, and state management agencies have to licence the institutions if they can meet the set requirements.
Regarding technical requirements, I think that these are not low barriers. Previously, securities companies needed to have VND100bil to have the right to do five types of business, while the capital required has been raised to VND300bil. It may be that when the Securities Law was discussed, the market was not as developed as nowadays.
VNN
|
