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Capital markets working group report
Measures to boost local market equity was a priority recommended at the Vietnam Business Forum held in Hanoi Dec. 1.
The measures included delaying the imposition of income tax on securities investment, lengthening the time of stock trading sessions and increasing the share number available each time orders are placed.
The points, aimed to raise liquidity and kickstart stock trading, are part of the four solutions put forward by the capital markets working group led by Dragon Capital’s Director Dominique Scriven.
According to the group, income tax imposition should be postponed until 2010, while the share number for each order placed should be raised over the current 19,990 shares.
This would be coupled with the disclosure of economic data, which is suggested to be dome at a specific time each month concurrent with a Government scheme to manage the economy.
Implementation of the scheme should be consistent with the disclosed information, which would help increase trust in State policies among investors and traders, the group said.
Businesses should also try to get their initial public offerings (IPO) and equitation on a par with other regional emerging markets and market regulators should also pay more attention to restructuring the bond market, the group added.
“Instead of having many kinds of bonds with low value, as is the case at the moment, market regulators should restrict the number of bonds. Also, it would be better to deal with existing bonds rather than issue new ones. That would help raise the liquidity of the markets,” Scriven said
VNA
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