The Vietnamese stock market is preparing to leverage exchangetraded funds (ETFs) and would-be derivatives to lure more capital, hearda workshop in Ho Chi Minh City on March 25.
Regulators arespeeding up legal and technical preparations so that the first ETFscould start operations in the second quarter of this year, Nguyen Son,head of market development department under the State SecuritiesCommission, was quoted by the Vietnam Investment Review as saying.
ETFs are funds that track specific indices and whose portfoliosinclude a basket of stocks. To date, all operating funds in Vietnam areclosed-end.
The Ho Chi Minh Stock Exchange (HOSE) and theHanoi Exchange (HNX) are finishing rules for product design and tradingmechanism of ETF certificates. The Vietnam Securities Depository iscompleting a project that allows clearing of ETF products and deals withrisks related to ETF transaction cancellation.
After all the steps are finished and piloted at stock exchanges, the first ETFs will be launched into transaction.
Also in order to leverage and better facilitate the market, the twobourses would become one in the coming time, before Vietnam’sderivatives market is set to open in 2016, Son said. The Governmentwould soon make the final decision on merging the two stock exchanges.
Regarding derivatives, Prime Minister Nguyen Tan Dung on March 11approved the project to build up and develop the derivatives market,which would include such new products as share purchase rights, coveredwarrants, option contracts, as well as traditional products like asshares and bonds.
Son said the derivatives launch over thenext two years is seen as another step towards completing the country’sstock market structure, supporting development of bond and stock marketsand strengthening the role of the stock market in the financialindustry and the entire economy.
The new market would bedeveloped from simple to complicated products, Son told the workshop,co-organised by Vietnam Investment Review and PetroVietnam SecuritiesInc. (PSI).
The PSI is the manager and operator of PVN-Index,the Vietnam National Oil and Gas Group (PetroVietnam) launched in 2012to measure the business performance of enterprises in the country’s oiland gas sector.
France-based Intelligent Financial Research& Consulting (IFRC), specialised in the new development of newindexes and in the customised index services, wanted to develop many newproducts based on PVN-Index, said IFRC founder and CEO Dr. Mai HuuMinh.
He added an idea from PSI and IFRC cooperation was toextend the idea of PetroVietnam to other leading Vietnamese companieslike state utility Electricity of Vietnam and Petrolimex.
PVN-Index is currently a basket of 32 share codes, including PVN-10Index representing the sector’s top 10 companies. The 32 codes accountfor 20 percent of the market capitalisation.-VNA
Regulators arespeeding up legal and technical preparations so that the first ETFscould start operations in the second quarter of this year, Nguyen Son,head of market development department under the State SecuritiesCommission, was quoted by the Vietnam Investment Review as saying.
ETFs are funds that track specific indices and whose portfoliosinclude a basket of stocks. To date, all operating funds in Vietnam areclosed-end.
The Ho Chi Minh Stock Exchange (HOSE) and theHanoi Exchange (HNX) are finishing rules for product design and tradingmechanism of ETF certificates. The Vietnam Securities Depository iscompleting a project that allows clearing of ETF products and deals withrisks related to ETF transaction cancellation.
After all the steps are finished and piloted at stock exchanges, the first ETFs will be launched into transaction.
Also in order to leverage and better facilitate the market, the twobourses would become one in the coming time, before Vietnam’sderivatives market is set to open in 2016, Son said. The Governmentwould soon make the final decision on merging the two stock exchanges.
Regarding derivatives, Prime Minister Nguyen Tan Dung on March 11approved the project to build up and develop the derivatives market,which would include such new products as share purchase rights, coveredwarrants, option contracts, as well as traditional products like asshares and bonds.
Son said the derivatives launch over thenext two years is seen as another step towards completing the country’sstock market structure, supporting development of bond and stock marketsand strengthening the role of the stock market in the financialindustry and the entire economy.
The new market would bedeveloped from simple to complicated products, Son told the workshop,co-organised by Vietnam Investment Review and PetroVietnam SecuritiesInc. (PSI).
The PSI is the manager and operator of PVN-Index,the Vietnam National Oil and Gas Group (PetroVietnam) launched in 2012to measure the business performance of enterprises in the country’s oiland gas sector.
France-based Intelligent Financial Research& Consulting (IFRC), specialised in the new development of newindexes and in the customised index services, wanted to develop many newproducts based on PVN-Index, said IFRC founder and CEO Dr. Mai HuuMinh.
He added an idea from PSI and IFRC cooperation was toextend the idea of PetroVietnam to other leading Vietnamese companieslike state utility Electricity of Vietnam and Petrolimex.
PVN-Index is currently a basket of 32 share codes, including PVN-10Index representing the sector’s top 10 companies. The 32 codes accountfor 20 percent of the market capitalisation.-VNA
