According to VnExpress, 96% of the 303 trillion VND in outstanding brokerage loans is attributed to margin lending. This figure, equivalent to over 290 trillion VND at the end of Quarter II, marks an all-time high, exceeding the previous record set when the VN-Index reached its peak in 2022.
Margin lending is a core business activity for brokerages. These firms lend money to investors for stock purchases, using the purchased shares as collateral, and in return, they collect interest. The margin lending limit for these firms is capped at 200% of their equity.
VnExpress data shows that in Quarter II, 25 companies had outstanding margin loans exceeding 1 trillion VND. TCBS led with over 33,192 trillion VND, followed by SSI with over 32,820 trillion VND.
Nguyen Trong Dinh Tam, Deputy Director of ASEAN Securities' Analysis Division, explained that the record high margin lending in Quarter II reflects investors actively seeking opportunities in a positive market. During this period, the VN-Index climbed 70 points to 1,137, its highest level since 4/2022.
Tam attributes the rising margin debt to the increasing number of investors, both institutional and individual. By the end of June, there were 10.2 million securities accounts nationwide, a nearly 1 million increase since the beginning of the year.
He also noted that many brokerages are prioritizing margin lending over traditional brokerage services. According to An Binh Securities (ABS), profits from margin lending across the industry reached 23,703 trillion VND in 2024, a 43% year-on-year increase, accounting for 43% of total operating income.
Meanwhile, brokerage services generated only 14,081 trillion VND in revenue, less than margin lending. Several firms like TCBS, Pinetree, and DNSE are offering free trading to attract clients.
The ASEAN Securities expert believes market margin levels will continue to rise with increasing investor participation, regardless of the VN-Index. "Record margin levels do not pose a market risk. Market corrections are mainly due to technical factors after a period of growth," Tam stated.
Therefore, brokerages are expected to continue expanding margin lending alongside market growth and their own capital growth.
To manage margin risks, the ASEAN Securities expert advises investors to use margin only during short-term corrections in an uptrend. Investors should limit margin use when the market and many stocks show overbought momentum indicators and also towards the end of each quarter.
Trong Hieu
