Vietnam Takes Measures to Cool Down Stock Market
Vietnam’s State Securities Commission (SSC) on January 23 launched five measures in order to stabilize the growth of local stock markets, following Government instruction.
First, Vietnam will temporarily hold the allowed foreign ownership rate in listed companies at 49 per cent, the current level.
Second, the SSC will coordinate with the State Bank of Vietnam (SBV) to tighten control over loans for securities trading, and inspect foreign investment flow transferred into Vietnam for securities trading as well as their withdrawal.
Third, the SSC will carry out inspections of securities companies said to do wrong in placing buy and sell orders, delaying in share custodian.
Fourth, the SSC will ask listed companies to boost announcement of financial reports in 2006.
Fifth, foreign securities investment funds in Vietnam will have to reregister with the SSC as they had not been supervised before.
Last, all authorized accounts, especially those of foreign investors, must be reported to the SSC for consideration.
The stock market watchdog said it will boost propaganda on the stock market for local investors. It will also release financial criteria of listed companies to help investors with appropriate decisions. (Vietnam and World Economy, VietnamNet)
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