Thursday, May 13 2021

VietNamNews

Việt Nam's stock exchange officially established

Update: December, 29/2020 - 11:03

 

The Hồ Chí Minh Stock Exchange (HoSE) in HCM City - one of the two subsidiaries of the Việt Nam Exchange. — Photo cafef.vn

HÀ NỘI — Prime Minister Nguyễn Xuân Phúc has signed a decision to establish the Việt Nam Stock Exchange (Việt Nam Exchange), headquartered in Hà Nội.

Under the decision, the Việt Nam Exchange will operate as a limited liability company with a charter capital of VNĐ3 trillion (US$130 million).

The Việt Nam Exchange will be accountable for its own development strategy and plan for each year and the coming five-year period.

The exchange will also be in charge of developing and issuing regulations on share trading and listing and information disclosure.

Given recent incidents on the stock market that have halted trading on the Hồ Chí Minh Stock Exchange, the Việt Nam Exchange is empowered to oversee potential risks that threaten the stability and development of the Vietnamese securities market while making recommendations to resolve the problems.

In addition, the Việt Nam Exchange is held responsible for co-operation between Việt Nam and other countries in terms of securities market issues.

The Hồ Chí Minh and Hà Nội stock exchanges will be the two subsidiaries and the Việt Nam Exchange will hold 100 per cent of capital in the two bourses.

The Hà Nội Stock Exchange will take charge of the derivatives market, the Government and corporate bond markets, and other products.

The Hồ Chí Minh Stock Exchange is authorised to manage the common stock market and other securities products.

The two bourses are obliged to supervise trading activities and information disclosure of listed companies and invest in technology and product development to meet the market demand.

In addition, the two bourses have to provide warnings and control of the illegal securities and oversee, halt and suspend the trading of some securities in the event of unusual trading activities.

Other missions of the two bourses include the acceptance, change and cancellation of securities, provision of auctions and bidding competitions, reporting of illegal actions on the market and giving advice on possible solutions to solve problems.

The decision will take effect on February 20 next year.

There are a total of nearly 1,660 stocks being listed and traded on the Hồ Chí Minh Stock Exchange, the Hà Nội Stock Exchange and the Unlisted Public Company Market (UPCoM). — VNS

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