To stabilise investor sentiment after the Lunar New Year holiday, the Ministry of Finance has directed the State Securities Commission to closely monitor the market and crack down on the use of negative information about the coronavirus epidemic to manipulate stock prices.

Deputy Minister of Finance Vu Thi Mai speaks at the regular Government
press conference in Hanoi on February 5 (Photo: nhadautu.vn)

The statement was made by Deputy Minister of Finance Vu Thi Mai during a Government press conference on February 5 in Hanoi.

The deadly coronavirus outbreak has been roiling global markets and the Vietnamese stock market has also been seriously affected.

"In the two trading sessions that were mostly hit in January, on January 30 and 31, the VN-Index plunged a total 4.54 percent," Mai said.

According to the Deputy Minister, this was quite a deep decline as investor sentiment had been dampened by the outbreak of the disease which has claimed more than 500 lives, mostly in China.

“However, this decrease of the stock market is still lower than some other countries that had detected cases of coronavirus infection earlier,” Mai said.

“In the last two weeks of January when the epidemic began to spread out, the Asian stock markets witnessed strong declines with Hong Kong falling 9.4 percent, the Republic of Korea dropping by 5.8 percent and Thailand decreasing 5.4 percent,” Mai said.

“Since early February, Vietnam’s stock market has narrowed its decline. In the first two sessions of February, the VN-Index only dropped by 0.8 percent, standing at 929 points. Particularly on February 4, the market rebounded and increased by 0.95 points compared to the previous session.”

“Following the instruction of the finance ministry, the leaders of the State Securities Commission need to ask the Hanoi Stock Exchange and the Ho Chi Minh Stock Exchange as well as securities companies to report on daily transaction activities and to combat the use of the news about coronavirus to manipulate stock prices.”

“The Securities Depository Centre needs to strengthen supervision, make daily reports and co-ordinate with market regulators to strictly handle acts of profiteering and spreading fake rumours,” Mai said.

“Securities companies have to make daily reports, especially those on fund transactions, margin trading and strictly comply with regulations on transactions.”

Regarding medium and long-term solutions, the Ministry of Finance will continue to improve institutions and issue a system of guidelines for the Securities Law, she said.

The ministry would also focus on the promotion of stock market restructuring, continue to strengthen inspection and supervision over trading activities, ensure market discipline and create trust among investors, she said.