Milanista1984
20-02-2009, 11:11 AM
The State Securities Commission (SSC), the stock
market regulator, has relaxed a ban on margin trading and lending
against shares.
Brokers and banks would initially be allowed to
provide the services against bonds before expanding it to some stocks,
the SSC said, but did not disclose when the relaxation will take effect.
Resuming the services would boost the market liquidity
and improve brokerages’ income, which has been hit hard by the market’s
nosedive, Phan Quoc Hung, director of Vietinbank Securities Co., said.
Stocks have fallen to very low levels, but investors do not have money to buy, he said.
Though the regulator imposed the ban last October to
ease the volatility that was rocking the market, many brokerages backed
by banks continued to lend against shares.
SeaBank Securities Co. still allows clients to pledge their shares to borrow, Vice Chairwoman Le Thi Mai Linh said.
Sacombank Securities Co. lends against 15 large caps
on the Ho Chi Minh Stock Exchange and some unlisted stocks, including
Eximbank, Military Bank, Habubank and construction firm Vinaconex.
The SSC, however, did not crack down on the offenders.
market regulator, has relaxed a ban on margin trading and lending
against shares.
Brokers and banks would initially be allowed to
provide the services against bonds before expanding it to some stocks,
the SSC said, but did not disclose when the relaxation will take effect.
Resuming the services would boost the market liquidity
and improve brokerages’ income, which has been hit hard by the market’s
nosedive, Phan Quoc Hung, director of Vietinbank Securities Co., said.
Stocks have fallen to very low levels, but investors do not have money to buy, he said.
Though the regulator imposed the ban last October to
ease the volatility that was rocking the market, many brokerages backed
by banks continued to lend against shares.
SeaBank Securities Co. still allows clients to pledge their shares to borrow, Vice Chairwoman Le Thi Mai Linh said.
Sacombank Securities Co. lends against 15 large caps
on the Ho Chi Minh Stock Exchange and some unlisted stocks, including
Eximbank, Military Bank, Habubank and construction firm Vinaconex.
The SSC, however, did not crack down on the offenders.