The bank, which is 15% owned by HSBC, announced it secured initial approval from the central bank to establish two companies for stock broking and fund management. Provided it gets final regulatory approval from the State Securities Commission, the bank plans to start these operations in February.
The brokerage is expected to have registered capital of Vnd300 billion while the fund management firm will have Vnd40 billion.
VietnamÆs economy grew by 8.5% in 2007 -- the third consecutive year of above 8% growth and the fastest pace since the 9.3% growth recorded back in 1996. Meanwhile, the combined market capitalisation of the Ho Chi Minh Stock Exchange and the over-the-counter Hanoi Securities Trading Centre more than doubled to nearly $31 billion in 2007.
However, the stockmarketsÆ performance for 2007 looks like a scary rollercoaster ride, and ended down. Speculative retail investors pushed the market to nose-bleed highs but they were also responsible for the bloodying lows.
Brokerage houses are scattered around the two main cities (indeed in District 1, the main business district of Ho Chi Minh City, you come across brokerages every few blocks) so that retail customers can make their calls with ease. So Techcombank is pushing into a crowded business thatÆs already well established. Most regular OTC investors know and trust their brokers whom they just as often deal with over the phone or in coffee houses.
The upside, of course, is that Techcombank branches are ubiquitous û so the bank should have no problem getting the word out about its new offerings. And officials from the bank also say they plan to expand retail operations in the fast-growing country by adding another 50 outlets to its 128 branches.
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