Stock market liquidity in the third quarter of 2024 is gloomy - Photo: QUANG DINH
According to data from Fiintrade, outstanding margin loans reached over VND228,000 billion, up 4% compared to the previous quarter. The leverage ratio remained high, with margin loans accounting for 9.2% of total market capitalization.
Highest ever securities lending scale
The above-mentioned outstanding debt has surpassed the record set in the second quarter of 2024 (nearly VND 219,000 billion). Even when the VN-Index reached a historical peak of 1,500, the margin was only nearly VND 185,000 billion (quarter 1-2022).
It is worth noting that outstanding loans continue to hit new highs, but this does not help the market to be vibrant. Liquidity in the third quarter of this year is "sluggish" and individual investors have reduced their net buying, in the context of fierce net selling by foreign investors.
The overall lending scale of the market has increased, but not evenly across securities companies. The margin lending race has seen the emergence of many names with "impressive" speed.
Like Vietcap (VCI), the securities company chaired by Ms. Nguyen Thanh Phuong, has just entered the "top" of companies with outstanding loans exceeding 10,000 billion VND.
The financial report shows that Vietcap's loans and receivables at the end of the third quarter of 2024 reached VND 10,111 billion, of which margin loans alone reached VND 9,950 billion, an increase of nearly 27% compared to the beginning of the year, but an increase of 77% over the same period.
Margin debt also suddenly increased sharply at some smaller securities companies such as DNSE (DSE), KAFI, and Lien Viet Securities.
Of which, DNSE's outstanding loans reached VND4,102 billion, up 65% compared to the beginning of the year. Not far behind, LPBank Securities' outstanding margin loans also increased from VND504 billion in the second quarter of 2024 to VND3,004 billion at the end of the third quarter. After only 3 months, this securities company has poured in about VND2,500 billion in loans.
The increase of Kafi securities was even more "shocking", when total outstanding loans reached 4,679 billion VND, 4.3 times higher than at the beginning of the year.
Kafi was previously a lackluster company and often made losses. However, since the end of 2021, the business situation has begun to change a lot when a major shareholder related toVIB .
Record margin, 'sluggish' liquidity
According to regulations, the total outstanding margin loan balance of a securities company must not exceed 200% of its equity. Currently, the ratio of outstanding margin loan/equity of the whole market is below 2 times, generally still at a safe threshold.
However, the value of margin lending continues to break the established record, but market liquidity in the third quarter of 2024 is still quite sluggish. In all three months, from July to September, the total transaction value in the market decreased consecutively.
Notably, the group of individuals also reduced their net buying, even continuously sold net in August and September. FiinTrade data also shows that the balance of investors' deposits waiting for transactions decreased for the second consecutive quarter, despite the number of newly opened accounts continuing to increase sharply.
Speaking with Tuoi Tre Online , Mr. Bui Van Huy - director of DSC Securities' Ho Chi Minh City branch - said that the increase in outstanding debt was mainly due to "deals", or negotiated loans.
Explaining more clearly about this form, Mr. Huy said that large investors and major shareholders of enterprises borrow by mortgaging stocks.
"The advantage is that the interest rate is relatively low and the procedure is easy for many businesses compared to bank loans. Margin loans only require mortgaging stocks in the securities company's loan portfolio," Mr. Huy said, adding that while borrowing from banks, many businesses do not qualify for loans, have run out of credit limits, or need collateral...
Regarding risks, Mr. Huy analyzed that when there are big fluctuations, it can cause cross-margin calls like in 2022.
"Meanwhile, individual investors limit the use of margin when they see a lack of opportunities in the market," Mr. Huy commented, this causes poor market liquidity.
Mr. Huy also said that the ability to supply margin is still quite large because a series of securities companies have increased capital recently.
Source: https://tuoitre.vn/la-ky-tien-cho-vay-choi-chung-khoan-nhieu-ki-luc-nhung-thanh-khoan-teo-top-2024102212543628.htm
![[Photo] Prime Minister Pham Minh Chinh inspects and directs the work of overcoming the consequences of floods after the storm in Thai Nguyen](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/10/08/1759930075451_dsc-9441-jpg.webp)
![[Photo] Prime Minister Pham Minh Chinh attends the World Congress of the International Federation of Freight Forwarders and Transport Associations - FIATA](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/10/08/1759936077106_dsc-0434-jpg.webp)
![[Photo] Closing of the 13th Conference of the 13th Party Central Committee](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/10/08/1759893763535_ndo_br_a3-bnd-2504-jpg.webp)
Comment (0)