Hanoi (VNS/VNA) - The State Securities Commission (SSC) hasannounced that it will implement a separate corporate bond trading system fromJuly this year to develop a transparent secondary market and increase liquidityfor corporate bonds.

This was the information announced by Ta Thanh Binh, Director ofthe SSC’s Market Development Department, at the seminar "Drawing capitalflows into the stock market", organised by the Securities InvestmentNewspaper this week.

When this market is operated, securities companies must ensurethat all investors participating in bond trading are professional investors, Binhsaid.

SSC is speeding up the restructuring of securities companies,continuing to change products in the market in a new direction, meaning thatthe HCM City Stock Exchange (HoSE) will be specialised for stock trading and HanoiStock Exchange (HNX) will be used for derivative products and bond trading,according to Binh.

“SSC is actively amending Decree 155, adding issues directlyrelated to the bond offering in the direction of simplifying administrativeprocedures so that businessmen can access bond trading easily and makedocuments conveniently,” she said.

Over the past three years, Vietnam's stock market has experiencedmany ups and downs. However, it still attracts a lot of people's attention. Thenumber of investors participating in the market has reached the target of over5% of the population, which exceeds the 3-year plan. There was a tradingsession that even saw liquidity up to more than 30 trillion VND (1.3 billion USD),helping many businesses mobilise medium and long-term capital.

Since the second quarter of 2022, Vietnam's stock market hasentered a period of decline in both scores and liquidity, making it moredifficult to raise capital through the market.

"The fluctuations and unpredictable variables in the marketare a great experience for investors and also for the management agency,"said Binh.

SSC has developed a strategy to develop the stock market towards2030 and is waiting for the Prime Minister's approval. One of the importantideas of this strategy is the concentration on sustainable development, notfocusing too much on growth in number and scale, according to Binh.

In order for the stock market to develop, it is necessary thatlisted companies and public companies operate effectively. Therefore, companiesneed to improve the governance quality, gradually embracing adoptingenvironment, society and governance (ESG) principles to create a foundation forbusinesses to access capital from international market.

One of the reasons why derivative market fluctuates so much wasbecause the lack of new products. In the near future, SSC would try toimmediately launch other products on the derivatives market such as VN100 indexfutures, Binh said.

SSC would also soon put into operation the new trading system KRX,which would not only support the implementation of new products, but alsoassist the market regulators in monitoring, based on information technologyapplication./.