Corporate bond market is gloomy but expected to be active soon

07/28/2023 15:19 Nhat Linh Print article

ANTD.VN - After the opening session of explosive value, the trading floor of individual corporate bonds is currently trading rather sluggishly. However, the leaders of HNX believe that the long-term benefits of the floor are huge.

According to HNX data, since the launch of the Private Corporate Bond Trading System, more than 8.3 million bonds have been traded through the system with a total transaction value of approximately VND 2,117.5 billion.

However, the volume of bonds traded mainly concentrated in the opening session with more than 5 million bonds, the total transaction value was over 1,781 billion VND.

Of which, there are 15 bond codes of Vietcombank with a total volume of 1,200 bonds, face value of 1 billion VND, equivalent to a value of 1,200 billion VND. Along with that are more than 5 million bonds of Vinfast, with a total value of more than 509 billion VND.

Up to this point, the system has added bonds of 2 enterprises being traded, including 3.25 million bonds of BIDV Bank with a total value of nearly 330 billion VND and 7,254 bonds of Industrial and Transport Development Investment Joint Stock Company worth 7.31 billion VND.

Corporate bond trading floor is gloomy but expected to be vibrant soon photo 1

Trading of corporate bonds on the floor was very quiet in the early stages.

Explaining the sluggish trading on the floor, Mr. Nguyen Duy Thinh - Chairman of Hanoi Stock Exchange (HNX) said that in the early stages, the goods were modest, so the trading was also modest. However, when the goods were put up for centralized and complete trading, the liquidity would gradually increase.

“It is important that transparency will be improved. Investors will have clearer information about price, value and trading volume to make accurate investment decisions," said the HNX leader.

According to the Chairman of HNX, according to the provisions of Decree 65, issuing organizations will have to list their bonds on the centralized exchange within 3 months from the time the system officially goes into operation.

This 3-month period is sufficient but must be very urgent. Thus, it takes time for businesses to carry out internal procedures within their companies, procedures for registration with the Securities Depository Center and the Hanoi Stock Exchange to put the bonds on the centralized trading floor.

There are currently more than 1,000 bond codes issued by about 500 companies on the market with a total outstanding debt of VND1,030 trillion. After the codes are put into centralized trading, liquidity will improve and the bond market will gradually recover.

“First from institutional investors, because at this stage market liquidity has just begun to recover abundantly, then it will spread to individual investors. When confidence returns, the issuance market has many positive signals that will lead to a vibrant secondary market in the second half of the year" - Mr. Thinh predicted.

Currently, HNX is developing and completing phase 2 of the individual corporate bond trading system, which is expected to be ready for operation in 2024. At that time, the system will be supplemented with an online trading channel in addition to the current remote trading method.

This helps member securities companies to be more proactive in providing transaction support utilities to customers.

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