As forecasted, the foreign capital flow into securities will increase sharply this month because from June 1, foreign investors will be allowed to hold maximum 49 percent of total share number of public companies according to the prime minister’s Decision No 55/2009/QD-TTg.
As for fund certificates of a public investment fund and chartered capital of a public securities investment company, the highest foreign ownership ratio is 49 percent. Also, bond issuers can fix foreign ownership ratio as for their bonds in circulation.
Accordingly, only foreign securities business institutions are allowed to contribute capital and buy stake to set up securities companies with the maximum contribution ratio of 49 percent of brokerages’ chartered capital.
Catching up with the preference, many foreign firms and investment funds planned to purchase shares of domestic companies. Recently, Global Alliance Partner (GAP) last month arrived in HCM City yesterday in order to study about Vietnam’s markets and to search for investment opportunities here in different sectors of finance, infrastructure and agriculture.
Reportedly, the Capital Partner Securities Co in Tokyo, Japan, a member of GAP, which has set up a $250 million investment fund in the past two years, plans to make investment in Vietnam now.
Additionally, Saigon Asset Management (SAM), who now manages two Germany market listed investment funds namely VEH and VPH, revealed that it wanted to pour capital in real estate private companies with feasible projects in Hanoi and HCM City.
Statistics showed that from the year early to the end of May, on Ho Chi Minh Stock Exchange (STC), foreign investors purchased nearly 150 million shares and sold out 160 million shares. They paid much attention to blue chips with high market prices and offloaded the share codes with low market prices. Especially, during the first seven months of May, foreigners’ net purchase on STC reached 19.9 million shares worth 798 billion dong. Even on May 6, the net purchase was recorded at about 10 million shares, marking the highest level in the past one year.
Nguyen Son, head of State Securities Commission’s (SSC) market development committee said that because of the movements of global market from 2008 end and 2009 early, foreign investors boosted the securities offloading to restructure their investment portfolio including a large volume of shares with high liquidity and G-bonds. And now they enhanced purchase thanks to the positive recovery of the market.