The domestic stock market has still been assessed positive despite recent adverse impact, partially thanks to its internal factors, the head of the State Securities Commission (SSC) affirmed on March 31.
SSC Chairman Tran Van Dung made the affirmation following the arrest of Trinh Van Quyet, Chairman of FLC Group JSC, pending investigations into charges of stock market manipulation.
The SSC will continue its close coordination with the investigation agency to ensure market transparency, he said, asking investors to keep calm as the market has still remained stable.
The FLC case would exert only short-term and mild impacts on the market as the total value of shares of FLC and its affiliates makes up only 0.16% and 0.35% of the combined market capitalisation, Dung said, citing latest statistics showing positive macroeconomic indicators and noting that major international institutions have highly valued Vietnam’s economic growth this year.
Despite pressures on interest rates, the State Bank of Vietnam (SBV) has maintained its stable monetary policy to support the national economic growth. Moreover, rosy signs have been seen in the operation of enterprises amid the COVID-19 pandemic.
He also pointed to other favourable factors regarding capital flows in the stock market and the enhanced equitisation and divestment.
According to Dung, after the Ministry of Public Security's Investigation Police Agency decided to launch criminal proceedings against and arrest Quyet for allegedly manipulating the stock market, the SSC immediately convened a meeting to discuss what should be done in the time ahead.
The commission asked FLC to release relevant information in line with regulations, and submit reports to the SSC and the Ho Chi Minh City Stock Exchange (HoSE).
On March 29, the commission announced Quyet’s arrest on its website and to press agencies, and asked investors to stay calm and to make investment decisions on the basis of realities.
Apart from solutions to ensure market stability, the SSC will work harder to enhance transparency, discipline and sustainability of the market in 2022 and the years to come, he pledged.
The Ministry of Public Security's Investigation Police Agency on March 29 decided to launch criminal proceedings against and arrest Quyet.
According to the investigation agency, Quyet would be charged with “manipulating the stock market" in line with Article 211 of the Penal Code.
On January 10, Quyet sold 74.8 million FLC shares without any reports and notifications in advance as stipulated in regulations, triggering public concern and pushing the stock market in chaos.
The SSC immediately decided to block Quyet’s securities accounts to prevent him from committing other illegal acts, and asked the Ho Chi Minh City Stock Exchange (HoSE) to cancel the transactions of the 74.8 million FLC shares. Many investors were refunded.
On January 18, the commission issued another decision under which Quyet was fined VND1.5 billion (US$65,600), the heaviest penalty in line with regulations, and banned him from stock trading activities for five months.