Securities firms diligently working, waiting for their moment
While some securities firms plan to close their doors or sell themselves to foreign investors as the market keeps falling, others are opening more branches or raising chartered capital in order to improve competitiveness.
ACB Securities Company (ACBS) has not been providing several services for the last one month. ACBS General Director Nguyen Viet Hai said that it is now the right time to standardise the company’s operation management procedures. Hai acknowledged that previously, when the market was overly hot, the company still provided services even though it did not have standardised operation management.
Like ACBS, other securities firms are working hard to improve their competitiveness to get prepared for the time when the market bounces back.
As for Bao Viet Securities Company (BVSC), the service the company is focusing on is giving consultancy on business restructuring.
Vo Huu Tuan, Deputy General Director of BVSC and Director of BVSC HCM City branch, said that the demand for the service is increasing. Since the ‘hot development period’, most businesses have wanted to review their development and re-consider their development strategies for the time to come. Therefore, BVSC needs to prepare itself well to give strategic consultancy for 5-10 more years. The company is also preparing itself for merger and acquisition consultancy services, which are now in high demand.
Meanwhile, the Saigon Securities Incorporated (SSI) has been focusing on investment consultancy. SSI has changed its monthly bulletin into a weekly bulletin in order to provide more updated information for investors.
SSI’s analysis proves to be useful for domestic individual investors, who are the majority in the market. The investors do not have opportunities to access reports by foreign institutions due to the language barrier, while domestic companies’ reports which use unfamiliar analysis methods prove to be difficult for them to understand.
Securities firms of the second and third generations are also striving to use this time to improve their competitiveness.
Phan Huy Chi, Chairman of SME Securities Company, said that the company has put into operation $2mil South Korean software that serves transactions. With the new software, SME’s clients can make online transactions when the two trading floors apply the automatic transaction scheme.
A representative of Click and Call Securities Company has revealed that the company is going to put new technology, now being used widely in developed stock markets, into operation. The technology will allow investors who have transaction accounts at the company to seek information on the Internet more easily.
The State Securities Commission has wrapped up a draft on changing some provisions of the regulation on securities firms’ operations which sets stricter requirements on the establishment of securities firms. The legal entities which make capital contributions must have the minimum legal operation of five years, and have the chartered capital of VND300bil at least.
Securities firms which are not one-member limited companies must have at least two founding shareholders that are legal entities, one of which must be established and operate under the Law on Credit Institutions, Insurance Law or Securities Law (but not securities firms). Founding shareholders that are legal entities must hold at least 65% of the securities firms’ chartered capital.
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