Home Business The Ministry of Finance prepares to discuss the stock market and corporate bonds

The Ministry of Finance prepares to discuss the stock market and corporate bonds

by Asia Insider

Recently, the Ministry of Finance announced that it will hold a meeting to discuss the stock market and corporate bonds on the morning of November 23 under the chair of Finance Minister Ho Duc Phuc.

The meeting will be attended by Deputy Minister of Finance Nguyen Duc Chi, leaders of the State Securities Commission, VNX, VSD, HNX and HoSE. At the same time, leaders of securities companies and leaders of businesses that issue bonds will also attend this meeting.

Previously, on November 14, the Ministry of Finance also issued a notice on the operation of the corporate bond market. According to the Ministry of Finance, corporate bonds are a type of securities products that confirm the obligation to repay the principal and interest of the enterprise to the investors who own the bonds.

Corporate bonds are not a bank savings product. Bonds are generally riskier than bank savings products, and the higher spread over savings interest rates is the risk that investors accept when buying corporate bonds.

With the above characteristics, the Ministry of Finance believes that investors are responsible for self-assessing the level of risk in investing in bonds, limiting transactions in invested bonds, and taking responsibility for investment decisions themselves. 

Before the violations of the issuer in the past time, in the market, there was an increase in bond repurchases, and individual investors sold bonds ahead of time due to concerns that businesses could not pay their debts. Faced with this situation, the Ministry of Finance suggested that participants in the market should comply with the provisions of the law and pay attention.

For issuers , it is necessary to be responsible for self-balancing cash flows to ensure the obligations committed to investors when issuing bonds.

For service providers, it is necessary to coordinate with broadcasters and investors to ensure the signed obligations as well as to ensure the reputation when providing services in the market.

Investors should be careful to analyze and classify the bonds they own, do not listen to false rumors. In particular, special attention should be paid to the responsibilities and commitments of service providers. The fact that commercial banks and securities companies distribute corporate bonds does not mean that these organizations guarantee or guarantee the purchase of bonds.

Finally, the Ministry of Finance affirmed, the corporate bond market is still a potential market when the capital needs of enterprises in the coming time for production and business development are very large. Therefore, the Government’s view is to continue to develop a safe, healthy and transparent operating market. Entities participating in the corporate bond market need to comply with the law.

Source: CafeF

Source: Vietnam Insider

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