SCC rules out tinkering with market

Hanoi (VNA) - The State Securities Commission has all but ruled out intervening in
the stock market and tightening the trading band.

"While investors are against intervention in the stock market, other stock
markets worldwide still use it as a band-aid measure in an emergency," commission
chairman Vu Bang said.

The market's recovery, however, depended on both the internal situation and global
economy recovery, Bang said.

"Tightening the trading band won't help."

Bang also said the commission was looking at launching a provision fund.

"We are collecting the ideas of market members on this matter. The provision fund
is quite popular in worldwide markets and works as a stimulation when the market
signals recovery rather than a band-aid solution for market development."

It was also possible that derivatives would be introduced in order to diversify
investment methods and to minimise investment risk, he said.

"However, the implementation of derivatives depends on many factors, including
investors' understanding of it and the quality of the technical system."

At present Vietnam was not set up to implement derivatives.

"It needs a careful plan. But this year we will focus on reconstructing the
market and completing the legal framework for securities business."-Enditem