Tran Van Dung, Chairman of the State Securities Commission, speaks at a seminar recently held in Hanoi (Photo: vneconomy.com) “Putting the new system into operation is not easy, requiring many steps andmuch preparation,” said Tran Van Dung, Chairman of the State Securities Commissionat a seminar held in Hanoi on June 24.
The implementation of the KRX project, aiming to tackle system overloads whichhave troubled investors recently, was delayed last year due to the COVID-19pandemic. HoSE would use all available resources to accelerate theimplementation of the project this year, it said.
The new system is set up by HoSE with support from the South Korea Exchange,meeting the requirements for Vietnam’s stock trading, including marketinformation, market surveillance, clearing, settlement and depository andregistration.
“SSC has many plans to develop the stock market but at the present time, easingoverloading is our top priority, other plans including the development of a10-year strategy for the market, may have to be delayed by several months,”Dungsaid.
“In recent months, many investors have been upset with the trading system butthey still show their sympathy. In the context of continuous congestion thesedays, the market regulators owe them an apology,” he said.
Since the end of 2020, Vietnam's stock market has witnessed a booming tradingperiod with multi-session liquidity of more than 24 trillion VND (1 billion USD)on HoSE.
On HoSE, liquidity has increased by nearly 13 times compared to last year,surpassing other countries in the region and now only behind Thailand andSingapore.
The wave of new investors entering the stock market has helped set newliquidity records, which is a positive signal for the market.
However, skyrocketing liquidity has far exceeded market forecasts, leading tofrequent congestion in many sessions, causing a lot of trouble for investorsand affecting the quality of the market.
The KRX system is expected to help the Vietnamese stock market enhance capacitywith higher liquidity, reaching up to 4 billion USD per session.
“Individual investors in the country are the driving force for the stock marketgrowth, so they should receive more attention,” said SSI Securities CorpChairman Nguyen Duy Hung.
“There is an unprecedented large number of new investors that have participatedin the market, this is a once-in-a-lifetime opportunity to build the Vietnamesestock market. Therefore, it is necessary to listen to domestic investors toensure transparent and secure transactions,” he said./.
VNA
