The stock market fell significantly in the second quarter of this year. Kis Securities believes that profits at securities companies in the closing months will be equal or slightly down year-on-year. It also touched on three factors affecting the securities industry from now to the end of 2022: the implementation of the KRX system, the redistribution of corporate bonds, and uncertainties over an upgrade to the local stock market.
Analysts believe that positive points in the revised Law on the Insurance Business include the removal of limits on investment in stocks and corporate bonds and the granting of permission to invest in trust funds. The revised law also allows foreign investors to own up to 100 per cent of charter capital in insurance or reinsurance companies.
According to the Ministry of Finance (MoF), corporate bonds are mostly purchased by credit institutions and securities companies, who often then sell them on to individual investors, resulting in the volume of bonds held by these investors standing at 32.6 per cent. In order for the bond market to develop transparently and effectively, the MoF will report to the National Assembly on amending a number of provisions in the Law on Securities and the Law on Enterprises.
Vietnam’s real estate market is experiencing a logjam in liquidity. Analysts have said that as credit and corporate bonds are shrinking, real estate prices may fall by up to 30 per cent. However, the Chairman of the Vietnam Association of Realtors (VARS) remains optimistic that the real estate market still holds substantial potential for development and can grow at an average annual rate of 15 per cent.
According to the Ministry of Finance, the total volume of corporate bonds set to mature in the three years from 2022 to 2024 is some VND745.4 trillion ($31.95 billion), primarily those of real estate businesses and credit institutions, which have around VND208 trillion ($8.9 billion) each.
