Prioritize short-term remedies for stock market stabilization

DNHN - This year, good things will happen that should help make the market more liquid and clear.

On May 12, the State Securities Commission said that, although Vietnam's stock market is likely to recover and rise again in 2022 and the following years, the management agency is attaching particular importance to short-term remedies to help stabilize the market and reassure investors' confidence.

According to the State Securities Commission, the Stock Exchanges, and the Vietnam Securities Depository Center have also met with many market members and securities companies to assess the current market situation and discuss short-and medium-term solutions for the market to overcome difficulties and stabilize once more.

In reality, after reaching a record high of 1,517.95 points in the opening session of the year (January 4), the VN-Index fell steadily to 1,238.84 points (closing session 12).

The stock market is making investors sad because most stock sectors, including those of companies that are doing well, keep going down.

According to a State Securities Commission spokesman, the local stock market is in a phase of substantial correction as a result of the combined influence of home psychological factors and foreign market dangers, such as the fact that the Reserve The US Federal Reserve (Fed) raised interest rates considerably.

There are unresolved geopolitical concerns, inflationary pressures, and dramatically higher input costs, particularly oil prices...

The State Securities Commission also actively disseminates information to stabilize investor sentiment, strengthen market participants' confidence, domestic and foreign investment public in the Party's determination, the State, the Government, and the Ministry of Finance in stabilizing the macro-economy and developing a transparent, public, safe, and efficient stock market.

Reviewing, evaluating, and summarizing to recommend shortcomings in the legal framework on securities and the securities market, including the Law on Securities and the system of guiding documents, particularly regulations on corporate information transparency, rights and responsibilities of participants, and sanctions for violations of the stock market law to protect investors, restoring confidence and guaranteeing a healthy, transparent market.

The State Securities Commission's leader stated that the management agency is actively completing the legal framework for the stock market as well as the formulation of a stock market development strategy; by 2030 to make clear goals, solutions, and a long-term plan for the development of the stock market.

The State Securities Commission will have more solutions in the future to improve the operational efficiency, quality of service provision, financial capacity, and professional ethics of Internet service providers, particularly securities companies, independent auditing companies, fund management companies, asset valuation system operators, credit ratings, accounting, and auditing.

The State Securities Commission also keeps a close eye on and regulates these organizations. It also helps them do their job of giving issuers and investors services that are clear, safe, and effective.

In terms of international capital flows, the State Securities Commission is expediting solutions to shorten the process of upgrading Vietnam's stock market, in addition to solutions to encourage foreign investor involvement. From the margins to the forefront

Although the upgrading will be heavily dependent on market rating organizations, the State Securities Commission is working with key authorities to come up with solutions, map out a clearer roadmap, and aim to enhance service quality.

The greatest degree of competitiveness suggests that the Vietnamese stock market will be improved as soon as feasible, meeting the government's aim.

Also, the State Securities Commission will do more to spread information and train investors so that investors can learn more about finance and securities and participate in the stock market safely and well.

Hoa Khai