Reviewing the ‘turbulences’ on the stock market in 2022

In the picture of the macro economy in 2022, Vietnam’s stock market has more muted colors than positive signs.

VN-Index drops 35% while Vietnam’s economy grows 8%

According to the Government’s report at the 4th session of the 16th National Assembly, it is expected that in 2022, Vietnam will achieve and exceed 14 out of 15 planned targets, of which GDP growth will reach about 8%, which is high. significantly more than the target of 6-6.5% set.

However, contrary to the recovery and high growth momentum of the economy, Vietnam’s stock market has recorded a sad mark in 2022 when the VN-Index dropped sharply from 1,498 points starting from 1,498 points. at the beginning of the year fell to 980 points at the end of 2022.

For the whole year, with a 35% decrease of VN-Index, most participants in the stock market had to accept losses.

The stock market in 2022 experienced many ups and downs

Psychological shock in the individual corporate bond market

In the second half of 2022, the individual corporate bond market (DN) witnessed a widespread psychological “shock” when investors witnessed incidents at Tan Hoang Minh Group and Van Thinh Phat Group. Declining confidence combined with the liquidity of cash flows to repay bonds of many businesses makes this market more risky. The total outstanding balance of individual corporate bonds in custody is VND 1.26 million billion, equivalent to about 15% of GDP.

In order to support the market and businesses to overcome the immediate difficult period, the Government and management agencies have taken many supportive actions. At the end of 2022, the Ministry of Finance submitted to the Government a draft Decree amending Decree 65/2022/ND-CP on private bond issuance in the direction of delaying the application period by 1 year for the following regulations: professional securities investor status, mandatory credit rating requirements; supplementing regulations that enterprises can convert bonds into loans, or other assets to pay bond principals and interests…

Criminal and administrative sanctions for a series of securities violations

In 2022, inspection and supervision activities on the stock market left many imprints in handling administrative and criminal violations. In 11 months of 2022, the State Securities Commission has administratively sanctioned 442 cases, with a total fine of 33.41 billion VND. Notably, there are 3 cases of stock manipulation; 4 cases of suspension of transactions; 15 cases must overcome consequences such as forced correction of information, payment to investors….

Many cases of manipulation in the stock market were handled in the past year

Based on the supervision results, the securities industry has transferred the police agency to criminally handle FLC stocks, violations at related companies in the “Louis group” and fraudulent appropriation of assets. assets occurred at ASA Joint Stock Company and some other units.

The wave of false rumors spread

Last year, the Chairman of the Board of Directors of a large corporation was banned from leaving the country; the chairman of a bank is about to be arrested; Bank S is about to default; V. securities company faces liquidity difficulties related to company X bonds… Rumors are rampant on forums and forums like in 2022. Many objects take advantage of rumors to form groups and key items. Buying and selling causes the stock market to have a continuous period of red fire, causing great damage to investors.

Faced with the above situation, the Ministry of Public Security has continuously issued recommendations to all organizations and individuals not to post, share, distribute or comment in agreement with fake news, untrue news, and news that cause public panic. essay. Many individuals have been handled for spreading false rumors…

Many false rumors cause confusion and affect investor psychology

Disposal of a series of pledged shares of leaders of listed companies

For the first time, there was a situation where securities companies disbursed securities mortgaged accounts of many business leaders. This activity also shows that listed companies have to pledge a large number of stocks/portfolios to borrow money from securities companies or as collateral for bond issuers to raise capital.

The typical line of mortgage-backed stocks are such codes as DIG, PRD, HPX, HDC, HBC, NVL… which caused the supply-demand balance in the market in many periods to be completely skewed towards the seller.

Derivatives market surpassed 1 million accounts after 5 years of operation

The VN30-Index futures derivatives market officially opened on August 10, 2017.

Particularly in 2022, the derivatives market recorded many records, such as 416,840 new derivative investment accounts were opened, bringing the total number of derivative accounts to more than 1.1 million accounts. During the year, the liquidity record was set on October 25, 2022 with 647,457 contracts.

The bright spot of foreign capital “flowing” into Vietnam’s stock market

By the end of December 23, foreign investors had net bought nearly 27,000 billion dong, equivalent to more than 1.16 billion USD, helping Vietnam’s stock market to record a rare bright spot in attracting foreign capital in 2022.

According to many forecasts, ETF is still an effective investment tool in attracting foreign capital into Vietnam’s stock market in the coming time.

Applying the T+2 payment cycle, bringing Vietnam’s stock market closer to the goal of being upgraded

From August 29, 2022, Vietnam Securities Depository and Clearing Corporation (VSDC) – an organization established on the basis of the Vietnam Securities Depository Center – officially shortened the payment period. Stock trading on T+2.

The number of securities accounts reaches 6.8% of the population of Vietnam

Statistics show that in the first 11 months of 2022, the total number of newly opened investment accounts reached 2,487,665 accounts, of which domestic individual investors opened 2.4 million new accounts. By the end of 2022, the number of accounts of domestic securities investors accounted for 6.8% of the total population of Vietnam. However, the majority of new investors experienced a sharp correction in stock prices and the number of new accounts opened rapidly decreased in the last 2 quarters of 2022.

Divestment and equitization of state-owned enterprises continue to face difficulties

As of December 15, enterprises belonging to corporations, corporations and state-owned enterprises have divedted capital with a book value of about 593 billion VND, earning 3,600 billion VND, much lower than the estimate. 30 trillion dong to be paid into the state budget decided by the National Assembly in 2022. The revenue from equitization and divestment of state capital has so far only reached 11% of the state budget estimate plan in 2022.

According to Duong Hung/Vanguard