Saturday, September 19, 2020 6:50:24 PM - Markets open
VN-INDEX 900.95 +6.91/+0.77%
HNX-INDEX 129.20 +0.73/+0.57%
UPCOM-INDEX 60.59 +0.72/+1.20%
New regulations about corporate bond issuance
VietNamPlus - 7/15/2020 1:55:10 PM
 (0 ratings. You must sign in to rate.)
 Privately-placed corporate bonds can no longer be sold within their first year of issuance, according to a new decree.
The decree amends several points of Decree No 163/2018/ND-CP dated December 4, 2018, about corporate bond issuance with new regulations tightened trading of privately-placed corporate bonds in the domestic market.  
According to experts, small-sized enterprises have been issuing corporate bonds in large volumes, creating potential risks for both issuing businesses and investors.
Under Decree No 163, privately-placed corporate bonds were issued to less than 100 investors excluding professional securities investors. However, as trading time was not limited, it created a loophole which allowed companies to issue bonds to less than 100 investors who could sell the bonds freely on the secondary market to more investors. 
The new decree, which will take effect on September 1, aims to better manage the corporate bond market which has seen rapid development in recent years and posed significant risks to investors.
According to the new decree, depository organisations must provide information about corporate bond trading within one working day of the trading being completed. Regular updates about bond registration and depository must be provided to the stock exchange monthly, quarterly and yearly.
The new decree also means violations of private corporate bond issuance will be handled in compliance with regulations about handling administrative violations in securities, securities market and other relevant regulations.
The Ministry of Finance said tightened regulations about corporate bond issuance aimed to protect investors and ensure safety for the bond market.
Recently, the ministry warned about the overheated development of the corporate bond market, urging investors to be cautious and to invest only when they thoroughly understand the issuing company. The ministry also said investors should not buy corporate bonds without studying possible risks.
The finance ministry’s statistics showed outstanding corporate bonds expanded rapidly, from 6.29 percent of the country’s gross domestic product (GDP) in 2017 to 9 percent of GDP in 2018 and about 11 percent in 2019 (worth around 640 trillion VND or 27.58 billion USD).
Vietnam has targeted that the corporate bond market size would be equivalent to 7 percent of GDP by the end of this year.
In the first four months of this year, enterprises raised about 58 trillion VND from issuing bonds, around half issued by real estate companies hungry for capital while credit policies for the property sector were tightened. Some companies even offered very high yields, about 1.5 percentage points higher than the common rate in the market./.
Read original article here
Newer News
15/09 Realty, materials boost VN market
14/09 Varying forecasts for stock market, plenty of opportunities for investors
11/09 Shares struggle as large caps vary
09/09 Local ETFs draw foreign attention
07/09 Profit taking to weigh on local market, but September may be bright
07/09 Stock market makes smart recovery in August [Sửa | Xóa]
03/09 New circular helps perfect financial products and stock market: expert
31/08 Beer industry: market slowly recovers
27/08 Selling pressure weighs down market
27/08 Intraday trading, short selling soon available: draft circular
Older News
13/07 Stocks to struggle on mixed Q2 earnings report releases
12/07 Rallies end as profit-taking weighs on large-caps
07/07 VN stocks advance as securities, banking and aviation industries rise
07/07 Corporate bond market to boom in second half
02/07 VN-Index rebounds, propped up by PMI data and interest cuts
01/07 VN stocks fall for sixth straight day
30/06 Shares plummet on GDP growth record low and surges in COVID-19 fatalities
29/06 July to be a hard month for Vietnamese shares
27/06 VN stocks end week lower on large-cap decline
26/06 VN stocks drop for a third day
Newsletter Signup
Top Stories
Reference exchange rate down 5 VND on September 15
Construction steel sales projected to recover in year-end months
HVN: Vietnam Airlines increases flights from/to Da Nang
Local ETFs draw foreign attention
Plastics industry shrugs off pandemic, interests stock investors
Market Update
Last updated at 3:10:06 PM
VN-INDEX 900.95 +6.91/+0.77%
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...
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.