|
Stock prices down, investors retrace their steps
Injecting money in banks and securities companies was once in fashion. However, a lot of investors now feel regret pouring capital into the risky business fields, trying to back out.
Financial pressure put on investors
The founding shareholder of a newly established joint stock bank reportedly wants to escape from the investment deal to gather strength on its main business field – technology development. However, it is not easy to withdraw capital from the bank now.
Under the current regulations, founding shareholders must not transfer their stakes within five years since the day of capital contribution. As such, the investor has been on the horns of a dilemma.
Analysts say that the investor might have realized that banking is really a “hard-to-deal-with” sector, and that it would be very risky if he continues putting money into a field about which he does not well understand.
PG Bank is facing a lot of difficulties when implementing the plan to increase the chartered capital from 2000 billion dong 3000 billion dong as requested by the State Bank of Vietnam. Petrolimex, one of the biggest shareholders, who is holding 40 percent of the stakes, needs to contribute 400 billion dong more to increase the bank’s capital to 3000 billion dong.
In fact, it would be not easy for Petrolimex to arrange enough 400 billion dong to contribute to the bank. However, this would be improper move to continue contributing capital to the bank while it is still burdened with the petroleum trade.
Under the current regulations, State owned enterprises must not contribute more than 20 percent of their capital to securities companies or banks. Meanwhile, in the latest draft document on the capital contribution management, the proportion has been reduced to 10 percent. If the draft is approved, Petrolimex would have to withdraw money from the bank, not to pour more money into the bank.
In the past, enterprises once rushed to make investment in banks and securities companies, considering this a wise move to diversify investments. However, they have changed their mind.
A banking expert said that a lot of enterprises planned to pour money into banks, hoping that they would be able to transfer shares to other investors for profit. However, their plans failed completely: as the stock prices keep falling, the investors still cannot recover their investment capital.
Meanwhile, the latest report by the State Securities Commission (SSC) shows a gloomy picture of securities companies’ operation, which has made investors feel worried about their investments in securities companies.
The report shows that 12 out of 105 securities companies cannot meet the finance safety requirements, while five of which has been put under the special control by the watchdog agency.
Also according to SSC, 80 securities companies reportedly took loss in the third quarter of 2011.
The list of unprofitable securities companies includes big guys, such as Saigontoutist Securities, Da Nang Securities, Hanoi Securities, TC Capital Vietnam, CiMB-Vinashin Securities, MHB Securities, Rong Viet, Hoang Gia, Phu Gia and Hung Vuong. Especially, the shareholders of the companies include the well known names in the fields of banking, tourism and rubber production.
Shareholders retracing their steps
Two years ago, SSC dissolved the Vietnam Fund for Industry and Energy which was hoped to become the biggest investment fund in Vietnam. The fund was initiated by BIDV, a commercial bank, and gathered the capital contribution of a lot of big state owned economic groups and general corporations which then promised to contribute 10 trillion dong.
However, the fund could not mobilize money from the state owned enterprises to carry out investment activities, because the enterprises said their difficulties forced them to delay the plan to make capital contribution.
In late 2010, Vincom Securities, the 12th biggest securities company at that time, announced that it would stop transactions in Hanoi. Meanwhile, Vincom, the parent group, stated that it planned to escape from securities activities to focus on the real estate business.
Earlier this year, Kim Long Securities Company also stirred up the public when announcing its intention to stop providing securities brokerage services.
Le Khac
vietnamnet
|
