28/04/2016 14:15 GMT+7 Email Print Like 0

Stock market should be main capital channel: Deputy PM

Hanoi, April 28 (VNA) – The stock market should serve as the main capital mobilisation channel for the economy, Deputy Prime Minister Vuong Dinh Hue said at a working session with the State Securities Commission (SSC) on April 27.

He required the SSC to better implement solutions to attract more foreign investors in the stock market, while joining hands with relevant authorities to work out operation mechanisms for venture funds with the goal of supporting business start-up.

The SSC should also develop the corporate bond market and prepare for the launch of derivative market, the Deputy PM said.

Hue affirmed that the Government will push forward the equitisation of State-owned enterprises and enhance corporate governance to create more commodities for the stock market.

A report delivered by SSC Chairman Vu Bang showed the securities market maintained a stable growth in the 2011-2015 period, with the market index having expanded 65 percent after five years. The stock market mobilised more than 1,211 trillion VND (55 billion USD) during the period, four times the figure of 2006-2010, contributing 23 percent of total social investment.

As of the end of 2015, 686 companies were listed on the stock market while 256 joined the Upcom, up two times from 2011. The securities market’s capitalisation rose 1.5 times from the 2011 figure and accounted for nearly 35 percent of the GDP.

The Government bond market registered an average growth of 31 percent, becoming an important capital mobilisation channel for the government, the report said.