Vietnam SSC to Inspect Financial Leveraging at Securities Firms

The State Securities Commission (SSC), Vietnam’s stock market regulator, is planning to conduct an overall inspection on financial leverages services at local securities companies.

 

The move is aimed to disclose those providing the services illegally to stock buyers, thus causing the domestic stock market to keep rising these days, according to the SSC’s head of Stock Market Development Department Nguyen Son.

 

The commission has assigned the departments of trade and inspection to conduct the checkup and to report to the SSC for immediate solutions, he said.

 

The use of financial leverages can result in deleveraging if the market goes down, Son noted.

 

SSC will also try to create a healthier environment by not allowing short selling activities among local stock brokers while it is planning to approve repo transactions and margin trading, which are also considered as leveraging, in the domestic stock market. (Saigon Economic Times)