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Tougher rules for listing planned

Update: February, 18/2012 - 09:54


An employee of the Tan Mai Paper Co sets paper on rollers. The company plans to list on the stock market this year. — VNA/VNS Photo Ngoc Ha
HA NOI — The State Securities Commission will impose higher standards for listing shares on the nation's stock exchanges, according to a comment from an anonymous official of the commission made to the publication Dau tu Chung khoan (Securities Investment).

The regulations, if enacted, would promote the listings of businesses with large capital and strong business performance, while eliminating shares with low potential for liquidity.

The HCM City Stock Exchange confirmed that, after lifting listing standards, it would co-ordinate with brokerages to disseminate the details to businesses that wished to list shares.

However, independent analyst Huy Nam commented that, while listed companies had successfully raised capital since debuting on the stock market, their overall business performance had not increased in proportion to the increase in capital and many stock values have declined.

"There should be more regulations to maintain effective operation of enterprises after listing instead of just reassessing the criteria applied before listing," Nam said.

The quantity of new listings declined significantly on both exchanges last year compared to previous years.

Tran Thi Anh Dao, director of the southern exchange's listing management division, said the exchange was considering giving nods to companies which filed for listings last year.

Hoang Huy Investment Services Co (HHS) became the first new listing this year when it debuted on Wednesday.

The exchange expected the number of new listings to at least reach last year's level of 30 companies, with the equitisation of the Bank for Investment and Development of Viet Nam (BIDV) to make a significant contribution to the value and volume of trades on the bourse.

On the Ha Noi Stock Exchange, no new listings were pending, but the exchange also said that companies would likely file to list after April, when their audited financial statements for last year would be published.

The situation also depended on economic conditions, the exchange noted. Pharmaceutical firm Mediplantex had planned to list its shares in 2010 but finally applied with the Ha Noi Stock Exchange late last year. If approved, the company with a charter capital of VND50 billion (US$2.4 million) would list this year. Along with Mediplantex, some other companies announcing plans to list back in 2012 that may debut this year include Tan Mai Paper Co and building contractor Song Hong. — VNS

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