Firms still hesitating about new bond trading system

Employees at the Hà Nội Stock Exchange (HNX) check bonds. When bonds are listed, they must be carefully inspected by regulatory agencies under strict criteria and requirements, thereby creating investor confidence. — VNA/VNS image

Three months after the introduction of the separate trading system for corporate bonds, only 300 corporate bond codes have been registered for trading, representing only a quarter of the number of bonds to be traded.

Putting bonds on the new bond trading system not only helps make the buying and selling process transparent, but also encourages companies to mobilize capital, according to Đỗ Đức Mạnh, deputy director of the Hà Nội Stock Exchange (HNX).

Since the separate trading system for corporate bonds came into effect (July 19), according to HNX, nearly 300 bond codes have been traded, representing a transaction value of more than VNĐ35 trillion.

Corporate bond codes with high transaction value included Vinfast with more than VNĐ8.4 trillion, Vietcombank with almost VNĐ5.9 trillion and BIDV with more than VNĐ3.9 trillion.

In particular, the transaction value increased significantly month by month. In July, the recorded transaction value was VNĐ3.6 trillion, in August VNĐ7 trillion, in September VNĐ9.5 trillion and in October VNĐ15 trillion.

But compared to the size of the corporate bond market, this transaction volume remains very modest, experts said.

According to information from Việt Nam Securities Depository and Clearing Corporation (VSDC), the number of documents VSDC has processed is up to 700 sets. However, many companies, after receiving the registration certificate, have not yet completed the procedures to list their bonds on the stock exchange.

Phạm Thị Thanh Hương, deputy chief inspector of the State Securities Commission, said that under Government Decree 153, if a corporate bond issuer fails or is slow to list bonds in the separate trading system for corporate bonds, it would be fined. from VNĐ10-400 million, depending on the due period.

Đỗ Bảo Ngọc, deputy general manager of Kiến Thiết Securities Company, said that even the highest fine value of VNĐ400 million is still too small compared to the company’s issuance scale of hundreds of billions of đồng.

Companies that are slow to list bonds on the stock exchange also understand this regulation, but they still accept the fines, said Nguyễn Quang Thuân, chairman of FiinGroup.

According to a report by VNĐirect Securities Company, in the third quarter of 2023 there were 88 corporate bond issues with a total issue value of VNĐ100 trillion, 2.6 times higher than in the second quarter of 2023 and a 50 percent increase over the same period last year. year.

According to Đỗ Bảo Ngọc, the reasons include the fact that some companies do not fully understand the listing procedures, many companies with poor financial situations are hesitant to list on the stock exchange due to information disclosure issues. Listing may also reveal sensitive or unfavorable information to companies, affecting their reputation and image.

In addition, some companies are concerned that listing on a separate corporate bond exchange will reduce the value of bonds due to market fluctuations and competition from other bonds.

Another reason comes from the fact that the corporate bond market is also affected by unstable investor confidence due to violations of some companies that have been dealt with recently.

To promote the listing of corporate bonds, experts suggest increasing the penalties for companies that are slow or do not list their bonds on the stock exchange.

In particular, financial expert Phan Dũng Khánh added that it was necessary to allow investors to continuously execute matching orders that they can do on the exchange, instead of only trading bonds through the agreement method as at present. .

Additionally, once bonds are listed, they should be carefully inspected by regulatory agencies under strict criteria and requirements, thereby instilling confidence in investors, he said. -VNS

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