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Short-selling not for the moment, says securities regulator
The State Securities Commission, which regulates the stock markets, will delay introduction of short-selling of stocks, according to a commission official.
“It is not feasible at the moment and it is too risky for a new market like Vietnam, especially after the recent economic crisis,” Hanoi-based Nguyen Son, head of the State Securities Commission’s Market Development Department, said by phone Tuesday.
The Commission planned in 2006 to allow short-selling by the end of this year to develop the markets and open up the financial industry.
“We need a timeframe for the plan because it depends on available technology, regulations, human resources and other conditions,” Son said, declining to give further details.
Short-selling refers to the sale of a borrowed security in anticipation of making a profit by buying it after its price has fallen.
thanhnien, bloomberg
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