Zhitong Finance APP learned that the Vietnam VN index fell 5.1% on Thursday as the plunge in real estate and bank stocks, becoming the world's worst-performing major benchmark index. No Va Land Investment Group real estate companies plummeted for the seventh consecutive day, with a drop of 6.9% today. Vietnam Industrial and Trade joint-stock commercial bank fell nearly 7%. Vietnam's stock market hit its biggest drop since April, mainly due to market concerns about the spread of liquidity shortage in the real estate industry, and the closing sentiment of leverage traders rose.
The spread of the entire real estate industry credit tightening is constantly raising concerns among investors, partly because of the comprehensive regulatory investigations of bond issuance and higher loan interest rates. No Va Land, the country's second largest listed developer, has reorganized its business amid an expanding crackdown, according to reports earlier this week. "Whether stocks are good or bad, the pressure on to add margin is still very high, which has led to a rapid spread of panic in the market selling."
It is reported that real estate developers are now working to obtain funds, and potential home buyers are facing the problem of credit tightening because National Bank warned against issuing high-risk real estate loans. According to the local Bond Association, due to the increasing scrutiny, Vietnamese real estate companies' bond sales have dropped by 50% this year. And these problems are hurting an economy that is struggling to control inflation and manage its growing debt burden, causing the Vietnam VN index to fall by more than 37% this year since the beginning of the year.
