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SSC proposes jumping on global anti-crisis bandwagon
The State Securities Commission (SSC) in putting in anti-crisis proposals to the Government for the local stock exchange, joining international efforts to minimise impacts from the US financial recession.
SSC’s chairman Vu Bang joined a discussion on Oct. 3 with commercial banks, securities firms and small and medium-sized enterprises on how to deal with the inflationary period.
The conference focused on the potential impact of the US financial crisis on local markets, discussing solutions for enterprises to overcome the inflationary period.
“The US recession has just influenced domestic export, the cost of some consumer goods and the disbursement of foreign direct investment in the country,” said Bang.
For the local stock exchange, the recession was primarily reflected in the fluctuation of investors’ attitudes on securities investment, mainly due to the depreciation of shares in global markets – the mechanism used to compare share value in the local exchange, he added.
“In addition, foreign institutions, due to common challenges, will restructure their investment capital in the local exchange, which could restrain foreign indirect investment in the future,” said Bang.
“However, we believe that we can solve the possible abnormalities in the local stock exchange which relate to foreign indirect investment, based on what we have in foreign reserves and the foreign investment portfolio, he added.
He noted the commission continued with strict management of securities institutions in the market. Investment activities from securities firms would also be closely controlled.
“Tighter management will help promote market liquidity, thus trading action will be more active,” Bang said.
The commission recently proposed to the Government a series of revised securities regulations, such as allowing more than one trading account for traders and tightening the criteria to establish securities firms.
The revision aimed to promote market liquidity, as well as encourage investors to trade.
VNA
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