HNX to launch new bond products in 2015

Monday, Dec 08, 2014 16:40

Domestic and international bond experts attend G-bond market members' conference Q4 in Ha Noi. — Photo HNX

HA NOI (Biz Hub) — Hanoi Stock Exchange (HNX) and the State Treasury have disclosed their plans to launch new products to develop the G-bond market next year.

These intentions were revealed during the G-bond market members' conference Q4 held in Ha Noi, which attracted local and international participants. During the gathering, the members were presented the plans to achieve the addition of new products to improve the local bond market in 2015.

HNX said they expect to launch the Zero coupon bond, Strip Bond, Bond Index and Repo set. Moreover, they shared the agency's move to launch some important services, such as the implementation of a connecting system of G-bond trading with the financial company Bloomberg, employment of online transactions (E.BTS) among the G-bond members and completion of the 2014 bond index.

During the conference, experts from financial firm Nomura Group shared their experiences in developing the derivatives bond market in Japan to provide guidance to Viet Nam in its goal to build a similar market in the future.

GIZ also introduced a capital market program for Viet Nam, which will be enacted from 2015 to 2017, including a green bond market.

State Securities Commission (SSC) Deputy Chairman Nguyen Thanh Long urged key market players to cooperate with each other, as well as to share information and services to develop new products. In addition, Long directed HNX to continue implementing innovative solutions to promote the secondary market and improve liquidity.

He also advised HNX to conduct further research to diversify the types of bonds in the market. Meanwhile, SSC will work to improve the legal framework to develop the local bond market.

As of November 2014, the State Treasury opened 123 G-bond auctions via HNX and 17 bill auctions through the State Bank of Viet Nam, as well as assisted Vietnam insurance companies to raise VND5 billion (US$234,741) worth of bonds.

After the auctions, the treasure mobilised VND229.3 trillion ($10.7 billion), which showed a 32 per cent increase compared with the value collected during the same period last year. HNX's transactions accounted for 83.3 per cent of the total amount.—VNS

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