The Internet site for online transactions of Government bonds will beput into use soon, marking a big change on the Vietnamese bond market,the Saigon Times Daily has reported.
Nguyen Thi Hoang Lan, vicechairperson and deputy CEO of the Hanoi Stock Exchange (HNX), was quotedas saying that the northern bourse will operate the site with manyproducts and information for investors. This online transaction channelis being test-run.
More products and new transaction tools onboth primary and secondary markets will be developed and offered in thecoming time, she said, adding HNX will also launch the Bond Index thismonth.
Together with the yield curve, the bond index is a marketindicator assisting investors in calculating bond prices andforecasting investment trends, which is expected to help boostparticipation of members and investors in Government bond transactions.
Derivativeslike zero-coupon bond, when-issued, sell/buy repo, borrowing/lendingrepo and cross-currency repo have been studied, which have attractedmuch attention from members and investors.
The Government bondtransaction system on HNX will be connected with the information systemof Bloomberg, making it easier for investors to search for informationand make transactions on only one screen, and facilitating access offoreign investors to the Vietnamese bond market.
Compared to bondmarkets in the region, Vietnam’s government bond market is of smallscale and not attractive. Products are not diverse and the marketstructure has not been completed.
Vietnam has yet to have either aderivative bond market or a connection between the Government bondmarket and open-market operations and the inter-bank market.
Tomake Vietnam’s Government bond market as developed as other markets inthe region in the next 5-10 years, Lan said measures to stimulate thebond market such as diversifying types of bonds, offering bonds withlonger terms and announcing bond issuance plans will be enhanced.
Inaddition, favorable conditions for insurance and financial companiesand pension funds to join the market will be created. HNX encourages theparticipation of foreign investors by adjusting tax policies and bondtransaction fees as well as offering hedging mechanisms for thoseinvestors.-VNA
Nguyen Thi Hoang Lan, vicechairperson and deputy CEO of the Hanoi Stock Exchange (HNX), was quotedas saying that the northern bourse will operate the site with manyproducts and information for investors. This online transaction channelis being test-run.
More products and new transaction tools onboth primary and secondary markets will be developed and offered in thecoming time, she said, adding HNX will also launch the Bond Index thismonth.
Together with the yield curve, the bond index is a marketindicator assisting investors in calculating bond prices andforecasting investment trends, which is expected to help boostparticipation of members and investors in Government bond transactions.
Derivativeslike zero-coupon bond, when-issued, sell/buy repo, borrowing/lendingrepo and cross-currency repo have been studied, which have attractedmuch attention from members and investors.
The Government bondtransaction system on HNX will be connected with the information systemof Bloomberg, making it easier for investors to search for informationand make transactions on only one screen, and facilitating access offoreign investors to the Vietnamese bond market.
Compared to bondmarkets in the region, Vietnam’s government bond market is of smallscale and not attractive. Products are not diverse and the marketstructure has not been completed.
Vietnam has yet to have either aderivative bond market or a connection between the Government bondmarket and open-market operations and the inter-bank market.
Tomake Vietnam’s Government bond market as developed as other markets inthe region in the next 5-10 years, Lan said measures to stimulate thebond market such as diversifying types of bonds, offering bonds withlonger terms and announcing bond issuance plans will be enhanced.
Inaddition, favorable conditions for insurance and financial companiesand pension funds to join the market will be created. HNX encourages theparticipation of foreign investors by adjusting tax policies and bondtransaction fees as well as offering hedging mechanisms for thoseinvestors.-VNA
