[NEWS] - Sustainable stock market development solutions

Currently, there are a number of proposals to develop the stock market in order to facilitate short-term capital flows for listed companies such as: Promoting and developing domestic IPO, ETF; Increasing the ownership rate of foreign investors; Supporting start-ups,...

Solutions to develop the stock market

In 2022, the VN-Index has dropped 32.8% compared to the closing level of 2021, this is the largest decline since the crisis in 2008. However, liquidity at a high level with average liquidity of more than VND 20,000 billion is a positive point (down 23% compared to 2021). This shows that the stock market in Vietnam is creating a new liquidity ground.

Vietnam’s stock market has had a catastrophic decline due to the influence of real estate stocks, a series of risks from bonds, and a prolonged freeze on individual investors in 2021, This is the reason why Vietnam’s stock market is one of the world’s biggest decliners.

Looking back at the Taiwan market in 1988-1990, the TWSE index lost nearly 10,000 points from the beginning of 1990 to September 1990 after the strong growth period of 1988-1989. The number of securities accounts reached about 4 million in the hot growth period, with more than 90% of transaction prices from retail investors, making Taiwan’s stock market liquidity close to 57. % of average liquidity reached 1989 of the US stock market.

It can be seen that the hot growth of Vietnam’s stock market in the period of 2020-2021 is quite similar to that of Taiwan’s stock market in 1988-1989. However, entering the 1990s, Taiwan’s stock market plummeted, causing many investors to suffer a lot during that period, forcing Taiwan to come up with many solutions but could not intervene directly. stock market.

Currently, Indochina Holding has a team of consultants with many years of experience in specific securities such as: Advising businesses on Nasdaq, HNX, House, Upcom, and IPO stock exchanges. At the same time, it supports loan consulting, can mobilize capital from funds with relatively low-interest rates, and advises on strategies, and forms of capital mobilization, choosing the optimal capital structure for businesses or projects investment projects.

Yen Dang ̣̣(Source of collection)