The transaction scale is increasingly growing
On July 19, 2023, the individual corporate bond trading system (TPDNRL) officially operated at the Hanoi Stock Exchange (HNX), marking an important development step of the individual corporate bond market. , when for the first time this market was centrally managed with the agreed trading method (market agreement and conventional agreement) through trading members.
After 1 year of operation, the individual corporate bond trading system has had a strong growth in transaction scale, actively supporting issuance activities on the primary market, helping businesses mobilize receive large capital flows from investors for production and business activities.
At the time of opening a year ago, the market had 19 individual corporate bond codes of 3 issuers registered for trading with a total registered trading value of 9,060 billion VND. By June 30, 2024, the market scale had reached 997 individual corporate bond codes of 259 issuing organizations, with the registered trading value reaching more than 706,236 billion VND.
The TPDNRL trading member system also developed rapidly, from 5 members at the opening day and by June 30, 2024, there were 48 trading members, including 44 securities companies and 4 commercial banks. Of these, 45/48 members have transactions on HNX's trading system.
Liquidity of individual corporate bonds has improved significantly, the average transaction value in the first month of opening reached 250 billion VND/session and by the end of June 2024 reached an average of more than 4,000 billion VND/session.
The most traded bonds are bonds of credit institutions (accounting for 45.71% of the entire market, corresponding to a transaction value of 324,246 billion VND), followed by bonds of real estate companies. assets (accounting for nearly 30% of the market's transaction value, equivalent to a transaction value of 212,577 billion VND).
In particular, the developed secondary market has created favorable conditions for businesses to mobilize capital in the primary market, contributing to promoting the primary market for individual corporate bonds to develop more healthily and sustainably.
According to statistics, from July 19, 2023 to June 30, 2024, there were 118 successful individual corporate bond issuances, with a value of 351,739 billion VND. Issuing organizations also repurchased before maturity, with the total value of bonds repurchased by businesses being VND 182,900 billion.
Future orientation
The corporate bond market is considered to play a very important role in the economy, creating a proactive capital mobilization channel for the business community, while contributing to diversifying the financial market, ensuring ensure harmony and balance of capital market structure, reduce excessive capital dependence on bank credit channels... Therefore, in recent times, mechanisms and policies related to the corporate bond market in general, in particular, has been constantly supplemented and improved in the direction of increasingly promoting safe, healthy and transparent market operations.
According to the assessment of the leaders of the State Securities Commission (UBCK), the operation of the bond market helps improve the operational efficiency of an important market segment, contributing to the development and stability of the stock market. , creating effective capital mobilization channels for the economy; At the same time, it helps management agencies, market members, and the investing public have more information about the bond bond market from primary to secondary, improving investors' self-responsibility in buying and selling activities. bonds...
Dr. Nguyen Duy Phuong - Investment Director of DG Capital - said that the efforts of managers to make the market transparent, especially the direct operating agency, HNX, have made an important contribution to limiting risks for investors. , promoting the liquidity and efficiency of this market.
Currently, secondary investors have the full right and ability to access all information about corporate bonds in the most complete way before making investment decisions. Most importantly, investors will receive clear and complete warnings about legal bonds such as the responsibilities of the issuing company, the responsibilities of investors and the management agency. This contributes to improving the caution of investors when investing in bonded debt.
In the coming time, the authorities also need to consider gradually reducing the proportion of individual investors investing in bonds. For the bond market to develop sustainably, it is necessary to improve individual investor knowledge. Individual investors are encouraged to authorize agents to thoroughly learn about bonds and take responsibility for the products they offer for investors to buy. Management agencies also need to soon have a mechanism to attract institutional investors, Dr. Phuong stated.
In the near future, the State Securities Commission will have regulations to direct retail investors to invest in stocks and corporate bonds through funds. This stems from the fact that violations occurring in the market all fall into the group of investors with limited risk assessment ability. Therefore, the State Securities Commission is researching subjects for private bond issuance, targeting professional institutional investors to enhance professionalism and assess risks.
Solutions for developing the individual corporate bond market
The State Securities Commission has requested units to research and implement solutions to build and develop an increasingly sustainable individual corporate bond market.
Firstly, continue to improve the quality of goods on the market through improving the quality of issuing organizations. There is a basic solution to control the quality of bond bonds through promoting the application of credit standards for bond issuers. Consider raising the conditions for issuing bonded bonds to minimize the possibility that many newly established businesses that have no operations or have been established but do not have operations can issue bonds with a scale many times larger than their equity capital.
Second, continue to improve the quality of investors in the direction of attracting professional investors in the financial sector, financial investors, and foreign institutional investors.
Third, close coordination between policy-making agencies, supervisory organizations, and domestic market members proposes solutions and initiatives to promote sustainable and healthy development of the market. market, solving difficulties, problems and obstacles in the operation of the market.
Fourth, consider promoting standardization, research, develop and apply a set of standard terms and conditions for corporate bonds to refer to international experience and practices to resolve the current situation of bonds with many other terms and conditions as at present.
Fifth, research encourages the development of a market ecosystem through developing and improving the quality of service providers and market intermediaries such as consulting organizations, guarantee organizations, and financial institutions. Credit Guarantee and Investment Facility (CGIF-Credit Guarantee and Investment Facility)...
Sixth, strengthen communication on activities, operations and regulations in the bond bond market so that businesses and investors can improve their understanding of rights, obligations and responsibilities in complying with the law and implementing regulatory obligations.
Bao Chuong
