In recent years, a variety of underlying assets in emerging countries, whether stocks or real estate, have attracted a large number of investors because of their unlimited room for development, friendly capital introduction policies and low prices.
Such is the existence of Vietnam.
The Ho Chi Minh Index (VN), which represents the mainstream index of the Vietnamese market, rose 141.18% in the six years and nine months from January 3, 2012 to September 27, 2019, according to Wind. Especially in 2017, with an increase of 48.03%, it became the best performing market in the Asia-Pacific region that year.
Due to the good performance of the Vietnamese market, more and more investors choose "Nuggets" Vietnam. After the layout of the five state-owned banks has been quietly completed, brokerages and public offering funds have also made big moves. RecentlyGuotai Junan(601211The International acquisition of Vietnam Investment Securities has been officially finalized, becoming the first Chinese securities firm to enter Vietnam. Tianhong Fund has also declared to the CSRC a few days ago a "Tianhong Vietnam Market Stock initiating Securities Investment Fund (QDII)." While the organization has a low-key layout, individual investors are also interested in the market, and at least more than 3000 Chinese have gone to Vietnam to open accounts.
Industry insiders pointed out that in terms of economic growth and market maturity, some emerging markets such as Vietnam are growing rapidly, and tapping the risk premium in such emerging markets may bring good returns to investors.
It took more than a year.
The acquisition of Vietnamese investment securities by Guotai Junan International has been officially finalized.
On the evening of September 27, Guotai Junan Securities announced that the company had received information from the China Securities Regulatory CommissionGuotai Junan Securities Co., Ltd.According to the reply letter from the Hong Kong subsidiary of the company to acquire the Vietnamese company, the CSRC has no objection to the acquisition of Vietnam Investment Securities Co., Ltd by Guotai Junan International Holdings Co., Ltd., the company's holding subsidiary. 、
This also means that after more than a year, the Chinese securities firm's acquisition of a local Vietnamese securities company has finally settled, making Guotai Junan the first Chinese securities firm to enter Vietnam.
In fact, as early as July 3, 2018, Guotai Junan International disclosed the plan, but for reasons of confidentiality, the specific name of the company was not disclosed at that time. It only points out that the company is actively negotiating to acquire a majority interest in a company (target company) in Vietnam, and thisTarget companyMainly engaged in the financial services industry.
Guotai Junan International said in an announcement at that time that the completion of the acquisition would help the company to further expand its business development in Southeast Asia after it is based in Singapore, thus enabling the Group to seize the opportunities brought about by the "Belt and Road Initiative" policy initiated by the Chinese government. and will help to maintain the group's international competitiveness and enhance its reputation.
Let's take a look at the origin of Vietnam Investment Securities, the other side of the acquisition.
According to public data, Vietnam Investment Securities was established on August 28, 2007 and officially listed on the Hanoi Stock Exchange on August 1, 2011. it is one of the two Chinese-controlled listed securities firms in Vietnam.
It is understood that Vietnamese regulators have strict control over securities firms' licenses, and it is difficult for foreign investors to set up new local securities firms, but foreign investors are allowed to control local securities firms. At present, there are five Chinese holding securities firms in Vietnam (excluding Chinese Taiwan capital), namely Vietnam Investment Securities, Vietnam Construction Securities, Southern Securities (FUNAN), Gateway Securities (formerly known as Wo Zhong Securities) and Vietnam Trust Securities, among which Vietnam Investment Securities and Vietnam Construction Securities are listed securities firms.
Funds and banks are also quietly setting up the Vietnamese market.
Not only are brokerages interested in investment opportunities in Vietnam, but public offering funds are no longer limited to traditional US and Hong Kong stocks. After India and Europe, some QDII funds have targeted the Vietnamese stock market.
On September 6 this year, the progress of approval by the CSRC showed that Tianhong Fund had declared a product called "Tianhong Vietnam Market Equity initiated Securities Investment Fund (QDII)". On September 24, the declaration received a written feedback. If the fund is successfully approved, it will mean that the regional investment market of the QDII fund will be further subdivided.
Zhang Bixuan, a researcher at Ji'an Jinxin Fund Evaluation Center, pointed out in an interview with the media that as a basic investment tool, public QDII funds will have more and more products with the increase in global demand for asset allocation, while emerging markets such as Vietnam will have more growth and growth space in the future. If we dig deeply into the investment opportunities of these market segments, we can also bring better investment returns to investors.
State-owned banks have also initially completed their layout in Vietnam. By the end of the first half of last year, China's five major state-owned banks, China Agricultural and Industrial Relations, had all set up branches in Vietnam, increasing the number of local branches to seven. Among themBank of China(601988, diagnosis Unit),Construction bank(601939, Diagnostic Unit) andBank of Communications(601328The branch of the Diagnostic Unit is located in Ho Chi Minh City.Industrial and Commercial Bank of China(601398, Diagnostic Unit) andAgricultural BankThe branch of (601288, Diagnostic Unit) is located in Hanoi. In additionICBC和Agricultural Bank of ChinaThere is also an office for each.
Why Vietnam?
So, why does this "cake" of Vietnam attract the favor of banks, brokerages, funds and other financial institutions?
Let's take a look at a set of data. The Ho Chi Minh Index (VN), which represents the mainstream index of the Vietnamese market, rose 141.18% in the six years and nine months from January 3, 2012 to September 27, 2019, according to Wind. Especially in 2017, with an increase of 48.03%, it became the best performing market in the Asia-Pacific region that year. As of September 27, 2019, the index has risen 11.8% so far this year.
Vietnam's good capital market performance is attracting more and more attention.
"where do brokerages like to invest most now, Vietnam and Cambodia", Tianfeng Securities (601162Liu Yuhui, chief economist, pointed out in a public speech a few days ago.
Huatai Securities(601688In March this year, the strategic team also published a research report saying that after the war, as a young and dynamic socialist country, Vietnam's economy has grown rapidly after reform and opening up, and foreign investment and export-oriented economy have made important contributions to growth. the comparative advantages of factor endowment, population structure, and low urbanization rate show that Vietnam still has a lot of room for growth. The advantage of demographic dividend is more prominent. As an important industrial support of Vietnam, the manufacturing industry has a bright future and has a certain investment value under the catalysis of good policy and system, factor endowment advantages, good foreign trade conditions and other factors. The team said that the current growth prospects in Vietnam are relatively optimistic. With the continuous introduction of favorable policies and the continued influx of foreign investment, there is still room for growth in the capital market, the logic of real estate supply and demand is clear, and there are certain investment opportunities in the Vietnamese stock market and property market. But beware of imported inflation and external risk shocks.
Dr. Pei Guangxin of the Department of Business Administration of Ho Chi Minh City Bank University believes that positive macroeconomic growth and the stability of the Vietnamese dong are regarded as positive factors for the Vietnamese stock market to attract foreign investors to make long-term investments in Vietnam.
On the other hand, at a time when the global economy is facing growth pressure, Vietnam's economy continued to grow and accelerated in the third quarter. Vietnam's statistics bureau said GDP grew 7.31 per cent in the third quarter from a year earlier, up from a revised 6.73 per cent in the second quarter.
And before that,Standard CharteredThe bank released its global economic report for the third quarter of 2019, which expects Vietnam to remain the fastest-growing ASEAN country in the short term, with economic growth expected to reach 6.9% in 2019. At the same time, the report points out that the manufacturing sector of foreign-invested enterprises is expected to achieve double-digit growth for the fourth year in a row, becoming the main driver of growth. This year, foreign investment will continue to pour into Vietnam, with a total investment of 18 billion US dollars. Exports will continue to grow steadily and surpass other countries in the region.
At least 3000 Chinese have joined the Vietnamese stock market.
Not only institutional investors, but also individual investors are interested in the Vietnamese market. According to the Securities Times, as of early April this year, more than 27700 foreign individual investors had opened accounts in Vietnam. Among them, the United States has the largest number of people, followed by Europeans and Koreans, the Chinese ranked fourth with more than 3000, and the Japanese ranked fifth.
First, let's take a look at the stock market situation and trading rules of Vietnam under the popularization of science. At present, there are three major stock exchanges in Vietnam-- Ho Chi Minh City Securities Exchange Center, which opened in 2000, Hanoi Securities Exchange Center, which opened in 2005, and UPcom in 2009. The former is equivalent to the domestic main board, Hanoi is equivalent to the domestic SME plate, while UPcom is equivalent to the domestic gem. The current market settlement model of the three major exchanges is Troup2, which means that there is no immediate access to funds for selling stocks, and the funds can only be received after the closing of Tumb2. From the point of view of the rise and fall, the rise and fall of Ho Chi Minh Exchange is ±7%, and that of Hanoi Exchange is ±10%. The rise and fall of PrimeUpcom Exchange is ±15%.
The Vietnamese government has liberalized foreigners to invest in local stocks, so is it difficult to open an account in Vietnam?
The answer is not difficult. When a Chinese opens a Vietnamese securities account, he or she can handle it at the business department of the local securities company as long as he / she holds his / her passport and travel endorsement. However, it should be noted that due to China's relatively strict domestic foreign exchange controls, there are still some obstacles to transferring money to Vietnam for stock trading.