Lending to 'play' stocks: Common points from the big guys 'dominating' the market

Companies with large market shares serving domestic individual investors reduce outstanding margin loans - Photo: QUANG DINH

Outstanding margin loans in the stock market reached nearly VND219,000 billion (nearly USD8.6 billion) at the end of the second quarter of 2024 - a record high ever.

The most "impressive" lending speed comes from the group of securities companies related to banks.

	Total outstanding debt
TCBS	24693
SSI	20385
HCM	18542
MAS	16746
VPS	11638
VND	11246
MBS	9978
VPBank	9284
VCI	7946
KIS	7855
ACBS	7500

How does the securities lending market share fluctuate?

Data from Wigroup - a company specializing in data solutions - shows that Techcom Securities (TCBS) continues to expand its margin lending market share to 11.46% of the total market by the end of the second quarter of 2024.

Up from 6.9% in the second quarter of 2023, the market share gain of this Techcombank securities company is happening rapidly.

In terms of absolute outstanding debt, TCBS reached 24,198 billion VND - equivalent to nearly 1 billion USD, which is also considered the highest outstanding loan that a securities company has ever achieved in the Vietnamese market.

	Quarter 2-2023	Quarter 2-2024
TCBS	6.9	11.46
MBS	3.63	4.65
VPBank	3.04	4.3
VCBS ( Vietcombank Securities)	3.22	2.79
BIDV Securities (BSI)	2.83	2.35
KAFI (VIB)	0.52	1.86
TPS	0.48	1.03

Meanwhile, in second place - SSI Securities lent VND19,596 billion to the market, only recovering market share to 9.28% from 9.22% in the same period last year.

Ranking third in market share for loans, HSC Securities also improved to 8.78% - the company's best market share in the past 3 years.

In the following "top" market share companies, data from Wigroup recorded a significant increase in the strength of banking-based securities companies such as: KAFI (VIB), MBS (MB), VPBankS (VPBank), TPS (TPB)...

Of which, VPBanks and MBS have increased their lending market share quite well in the last 3 quarters, together surpassing the level of more than 4%.

Notably, companies with strong individual customer base have lost significant market share over the past year, typically Mirae Asset, VPS and VNDirect all saw sharp declines of 1% to 2%.

Speaking with Tuoi Tre Online , Mr. Truong Dac Nguyen - Head of Analysis Department of Wigroup Data Solutions Company - commented that in the context of cheap capital and rock-bottom interest rates, securities companies have room to promote margin lending.

Among them, some securities companies belonging to banks with many advantages in capital sources have been expanding market share rapidly.

Meanwhile, the group of foreign securities companies gradually became less competitive as rivals accelerated with low-fee strategies. Meanwhile, HSC rapidly increased its market share of outstanding loans thanks to its focus on developing its institutional client base.

According to experts, margin growth is largely related to transactions of leading shareholders or major shareholders buying back large blocks of shares by agreement, which come from the amount of shares sold by foreign investors.

Also because of that, some companies with large market shares serving domestic individual investors reduced their margin loan balance last quarter in the context of low stock market liquidity.

Lending a lot, what is the remaining room?

Mr. Truong Dac Nguyen also said that the rapid increase in margin debt in the quarters also raised many issues regarding maintaining the capital safety ratio according to regulations, specifically the ratio of margin debt/equity.

In the second quarter of 2024, the margin debt/equity ratio increased to 82.2% - the highest level in the last 8 consecutive quarters.

To grow margin lending activities, many securities companies plan to increase capital this year. Among them, securities companies whose parent companies are banks show high capital growth.

	Loan room
TCBS	50
BSI	47
VPS	41
VDS	40
PSI	36
CTS	35
KIS	29
sanitary napkins	18
PHS	16
MAS	16
FTS	15
HCM	13
MBS	8

Data compiled from 30 securities companies with the largest market share shows that after-tax profit in the second quarter of 2024 is the highest in the past 9 quarters.

Leading the way are also securities companies with large outstanding loans to the market. TCBS is the "champion" with nearly 1,300 billion VND in after-tax profit, followed by SSI (848 billion VND)...

With a competitive strategy of cutting transaction fees, the ultimate goal of many securities companies is still to boost lending.

Margin lending is the "piece of cake" that contributes greatly to the profits of securities companies.

Source: https://tuoitre.vn/cho-vay-choi-chung-khoan-diem-chung-tu-nhung-ong-lon-ap-dao-thi-truong-20240801140441139.htm