Record high "margin" debt, many securities companies are about to run out of limits

In the context of the stock market increasing strongly since the beginning of the year with expectations of upgrading, many investors have increased margin lending.

By the end of the third quarter of 2025, the total outstanding loans at securities companies (including margin and sales advances) are estimated at VND383,000 billion (equivalent to USD14.5 billion), an increase of more than VND80,000 billion compared to the end of the second quarter and setting a new record.

Of which, margin loan balance accounts for about 370,000 billion VND, the highest level ever in the Vietnamese stock market.

Many securities companies are about to run out of capital.

As of September 30, financial reports showed that the total equity of securities companies was about VND308,000 billion. Margin loans/equity have reached 120%, the highest level since the second quarter of 2022 - the period when the market heated up and peaked.

Excessively high margin debt, combined with negative information from the inspection results of bond issuance violations, caused the VN-Index to plummet nearly 95 points in the session of October 20 - a big shock to the market.

However, according to experts, declines of over 5% are usually short-term and the market will soon recover. On the securities companies side, many units are planning to increase charter capital to expand lending limits, because margin activities are increasingly becoming an important source of income.

Dư nợ “margin” cao kỷ lục, nhiều công ty chứng khoán sắp hết hạn mức - 1 — Record high "margin" debt, many securities companies are about to run out of limits (Photo: DT).

Increase capital to loosen lending limits

According to regulations, securities companies are not allowed to lend margin loans exceeding 2 times the owner's equity at the same time. With the margin loan/owner's equity ratio at the end of the third quarter, securities companies estimate that there are about 246,000 billion VND that can be lent to investors on margin in the coming time.

To meet the demand, many large companies are rushing to increase capital. In early September, SSI announced the issuance of 415.5 million shares to existing shareholders, expected to increase charter capital from VND20,779 billion to nearly VND25,000 billion. With a selling price of VND15,000/share, the company will collect about VND6,200 billion, supplemented with margin lending and investment in bonds and certificates of deposit.

Techcombank Securities (TCBS, stock code TCX) has just completed the IPO of 231.1 million shares, priced at VND46,800/share, bringing its charter capital to VND23,133 billion. The company expects to earn more than VND10,800 billion, of which about 30% will be used for margin activities.

Kafi Securities has also just completed a capital increase to 7,500 billion through the issuance of stock purchase rights to existing shareholders. With the new capital, the company plans to expand its business in core areas such as margin lending, securities services, aiming for 350,000 accounts by the end of this year. It is recorded that after the first 8 months of the year, Kafi's margin lending activities increased by 100% compared to the same period in 2024, reaching 10,000 billion VND....

Source: https://dantri.com.vn/kinh-doanh/du-no-margin-cao-ky-luc-nhieu-cong-ty-chung-khoan-sap-het-han-muc-20251022094918749.htm