Friday, December 6, 2024 6:38:17 PM - Markets closed
VN-INDEX 1,270.14 +2.61/+0.21%
HNX-INDEX 228.93 -0.67/-0.29%
UPCOM-INDEX 92.81 -0.14/-0.15%
No pre-funding needed for foreign investors buying Vietnamese stocks
vietnamnews - 9/20/2024 11:23:27 AM
 (0 ratings. You must sign in to rate.)
Foreign institutional investors are going to be allowed to buy Vietnamese stocks without pre-funding, from November 2.
 
 
Foreign investors at a trading ceremony of a stock at the Hà Nội Stock Exchange (HNX).— VNA/VNS photo
 
The Ministry of Finance (MoF) has removed the pre-funding requirement for foreign investors before placing orders. This significant change marks a major milestone in the process of upgrading Việt Nam’s stock market from a frontier market to an emerging one.
 
The change was stated in Circular 68/2024/TT-BTC, which was issued on September 18 and will be effective from November 2.
 
Under the new Circular, investors are mandated to have sufficient funds available when placing buy orders for securities, with exceptions made for two scenarios: when the foreign investor is an organisational entity or a foreign-incorporated entity participating in investments within the Vietnamese stock market.
 
The securities firm will assess the payment risk of foreign institutional investors to determine the necessary funds when placing stock purchase orders based on agreements between the firm and the investor or their authorised representative.
 
If a foreign institutional investor fails to provide adequate funds for a stock purchase transaction, the payment shortfall obligation will be shifted to the securities firm where the order was placed through their proprietary account, except when the custodian bank holding the foreign investor's securities depository account is liable for the payment.
 
Circular 68 also revises regulations concerning language requirements for market information disclosure. Accordingly, listed organisations and large-scale public companies must publish information regularly in both Vietnamese and English starting from January 1, 2025.
 
They are obligated to disclose exceptional information, respond to information requests and provide details on other activities simultaneously in both Vietnamese and English from January 1, 2026.
 
Public companies not meeting the aforementioned criteria are required to publish information regularly in both Vietnamese and English starting from January 1, 2027, while disclosing exceptional information, respond to information requests and provide details on other activities simultaneously in both Vietnamese and English from January 1, 2028.
 
In its latest report, SSI Securities Corporation said that Circular 68 marks a significant step towards aligning the Vietnamese stock market with the criteria for an upgrade to an emerging market by FTSE Russell.
 
The analysis team of SSI believes the projection that Việt Nam could ascend to this new market tier during the evaluation period in September 2025.
 
Anticipating an upgrade to an emerging market, preliminary estimates by SSI suggest that capital inflows from exchange-traded funds (ETFs) could potentially reach US$1.7 billion, without factoring in capital inflows from active funds. — VNS
 
Read original article here
 
Newer News
05/12 Pharma stocks on the rise
02/12 Public investment stocks face challenges
02/12 Positive short-term signals emerge in Vietnam’s stock market
29/11 Market edges up as liquidity continues to decline
26/11 SSI regains top spot for charter capital in securities industry
26/11 PVT Logistics submits 66 million shares for HoSE listing after strong Q3
23/11 Market ends flat on rising selling force
21/11 Vinhomes acquires 190M shares, exceeds half of registered total
21/11 Foreign Investors set record in sell-off on HoSE
20/11 Market falls for fourth straight session as foreign bloc intensifies net selling
Older News
19/09 Property developer Novaland flagged over biannual report delays
19/09 Market extends rally as foreign investors continue net buying
18/09 Steel stocks chill as weak demand sends a shiver through the industry
16/09 Eximbank to pay cash dividend for the first time in a decade
16/09 Weak liquidity hampers stock market growth
13/09 Ministry proposes service fees for securities sector
13/09 Investors remain cautious on bond investments
12/09 The market continues to decline for a third consecutive day
12/09 Seafood stocks vary in performance
11/09 Open-end funds post outstanding performances: report
 
Newsletter Signup
Top Stories
VCCI recommends mineral mining rights be granted through auction and bidding
Central bank works to raise interbank rates and ease forex market
Inflation a concern following salary increases
National Council for Sustainable Development established
Việt Nam, Cambodia look forward to $20 billion trade
Market Update
Last updated at 3:05:03 PM
VN-INDEX 1,270.14 +2.61/+0.21%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.