MAS names sustainability head; Malaysia’s EPF appoints COO and CFO; GIC PE head for SEA leaves; State Super hires new exec; Hesta appoints chief growth officer, chief Debby Blakey appointed to corporate governance board; ex-BlackRock exec joins IQ-EQ in Singapore; HSBC AM builds direct real estate team; ex-Vanguard head of distribution joins LGIM; Sanne names Singapore head; and more
ôThere are some limitations at present,ö says Long. ôPreviously, we were only in charge of listed companies. Now, we are also in charge of public companies, numbering in the thousands.ö
There are around 200 stocks listed in Vietnam and around 4,000 joint stock companies.
Under the Law on Securities, which was enforced in January this year, joint stock companies with over VND10 billion ($633,000) in charter capital and more than 100 shareholders must register with the commission to be a public company or face fines.
However, only around 700 joint stock companies have registered to be public companies and accept SSC regulations.
Both listed and public companies are required to release their financial results, among other things. The financial reports must be audited within 10 days after being completed and must be published
Since the Law on Securities is relatively new, the SSC itself has to learn how to interpret all the provisions, Long says.
ôWe need to sort out what is legal and what is illegal. This will require time,ö he says. ôWe are improving our organisational structure to ensure enforcement. We need other guidelines and enforcement mechanisms.ö
Long noted that punishments for violation regulations is ônot severe enough because they only consider administrative violations and not criminal activities.ö
Long made the comments at the recent Funds World Vietnam 2007 conference in Ho Chi Minh City, which had 160 fund managers, investors, and investment professionals in attendance.
Investors still favour private equity assets for their higher growth, better governance structures, and diversification potential.
The recent focus on greenwashing has put bond issues under greater scrutiny. However, some market participants believe this risks paralysis by analysis.
The AU$85 billion ($61.6 billion) Australian super fund has some exposure to indebted property developer Evergrande. Meanwhile, China’s construction finance is part of its core strategy in real estate.
Investors are seeing the risks, but also the opportunities of the logistics sector. Warehousing their fears for the moment, they can see it's a good conduit to high-growth assets.