Ho Chi Minh City Stock Exchange

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Ho Chi Minh Stock Exchange
AbbreviationHOSE
FormationJuly 2000
Headquarters16 Vo Van Kiet Str, Nguyen Thai Binh Ward,  District 1, Ho Chi Minh city
Legal Representative
Mr. Le Hai Tra – C.E.O
Phone number
(+84 28) 3821 7713
Fax
(+84 28) 3821 7452
Websitehsx.vn

Ho Chi Minh Stock Exchange, formerly known as HCM Securities Trading Center, is a stock exchange in Ho Chi Minh City, Vietnam. It was established in 1998 under Decision No. 127/1998/QD-TTg of the Prime Minister. HCM Securities Trading Center officially opened on July 20, 2000, and had its first trading session on July 28, 2000, with 2 listed companies and 6 security company members.

The current HCMSE building formerly housed the Senate of the Republic of Vietnam where it functioned until the Fall of Saigon in 1975.

According to Decision No. 599/2007/QD-TTg of the Prime Minister in 2007, HCM Securities Trading Center was transformed into HCM Stock Exchange, with initial charter capital of VND 1,000 billion and the Ministry of Finance as the owner representing agency. The charter capital was adjusted to VND 2,000 billion in 2015.

The Decision No. 37/2020/QD-TTg of the Prime Minister issued on December 23, 2020, subjected to the establishment of the Vietnam Stock Exchange. Accordingly, The Hanoi Stock Exchange and Ho Chi Minh Stock Exchange will become subsidiaries with 100% of charter capital owned by the Vietnam Stock Exchange.

About Vietnam Stock Exchange[edit]

About Vietnam Stock Exchange

(according to Decision No. 37/2020/QD-TTg on the establishment, organization, and operation of the Vietnam Stock Exchange)

Vietnam Stock Exchange is the "owner company" established in the form of one-member limited liability company, with VND 3,000 billions as 100% of charter capital held by the State; has the legal status with its own seal; has bank accounts in Vietnam dong and foreign currencies, opened in the State Treasury and other domestic commercial banks; with independent accounting, implementation of financial regimes, statistical reporting, accounting, auditing and other financial obligations as regulated by the law.

Vietnam Stock Exchange and its subsidiaries have the function of organizing the security trading market in accordance with provisions of the security law; other functions prescribed by the law and the charter of organization and operation of The Vietnam Stock Exchange.

Duties and power of house[edit]

The following are the duties and powers of the house according to the organization and operation charter of the Ho Chi Minh City Stock Exchange issued together with Decision No. 07/QD-HDTV dated July 9, 2021.

Perform tasks related to the organization and operation of the securities trading market according to Clause 4, Article 2 of the Prime Minister's Decision No. 37/2020/QD-TTg dated December 23, 2020, on the establishment, organization and operation of the Vietnam Stock Exchange and the provisions of the securities law:

- Organize and operate the stock trading market, fund certificates, covered warrants and other securities trading markets in accordance with the law and the roadmap for rearrangement of securities trading markets; organize a securities auction system and adjust securities auction activities in accordance with the law and regulations of the Vietnam Stock Exchange;

- Suspend or suspend trading for one or a number of securities, in case the price and trading volume of securities have abnormal fluctuations, the listing organization, the organization registering for trading does not take any remedial measures. to remedy the causes leading to the securities being put under warning, control, and trading restriction or in necessary cases to protect the legitimate rights and interests of investors and to ensure the stability and safety of the investors; the suspension of securities trading comply with the provisions of law and regulations of the Vietnam Stock Exchange;

- Approve, change, cancel listing, register for securities trading, supervise the maintenance of listing conditions of listing companies and information disclosure activities of listing companies, apply for transactions in accordance with the law and regulations of the Stock Exchange of Vietnam;

- Providing auction and bidding services; services of market information and information related to trading securities; technology infrastructure services for the stock market, infrastructure services, engineering and other related services as prescribed by law;

- Inspect and handle violations against listing companies and registered for trading in accordance with the regulations of the Vietnam Stock Exchange.

Vision and missions[edit]

Vision[edit]

To become a world-class Stock Exchange, as the belief and preference of organizations and individuals in terms of capital raising and securities investment.

Missions[edit]

To develop the HCM Stock Exchange into an international-standard organization, improving the service quality in order to meet market needs, and contributing to the development of Ho Chi Minh City becoming the financial center of the country;

To organize and supervise securities trading activities to ensure the openness, fairness, transparency, and effectiveness of the stock market and to protect the legitimate rights and interests of investors;

Making the stock market as an effective and mainstream capital mobilization channel for the economy, in contribution to the sustainable development of Vietnam Capital market and the prosperous growth of the economy.

Ho Chi Minh stock exchange's products[edit]

Trading Products[edit]

Currently, Ho Chi Minh Stock Exchange is trading securities products such as: stocks, bonds, Closed Fund Certificates, ETF Certificates, and Covered Warrants.

At the end of June 30, 2021, there are 488 listed trading securities products which included: 385 stocks, 02 closed fund certificates, 07 ETF certificates, 65 covered warrants and 29 bonds. The total amount of listed stocks is more than 103,88 billion stocks. The value of listed capital is more than 5,28 million billion VND, increased 6,18% due to the previous month and increased 29,52% due to the end of 2020, reached 8,399% GDP of 2020.

Indexes[edit]

VNIndex: VNIndex is the first index of Vietnamese stock market, calculated and modified when the stock market was officially operated. VNIndex compares the current values of market capital to the value of market capital on July 28, 2000 – first operating date of Vietnamese stock market. The value of market capital is calculated by the index formula which is adjusted in scenarios as new listings, delistings and changes of listing capital. VNIndex calculating formula:

VN Index = (Current market value / Base market value) x 100

HOSE Index: HOSE Index was launched in 2014, is the index which allows investing in HOSE's listing stocks reached requirements on eligibility, free floating rate, and liquidity. HOSE Index accounts for more than 90% trading value and more than 80% capital value of listing Vietnamese stocks in HOSE.

Structure of HOSE Index

- VNAllshare: is a capitalization index consisting of stocks listed on HOSE that meet the screening requirements for eligibility, freely transferable ratio, and liquidity.

- VN30: is a capitalization index designed to measure the growth of the top 30 companies in terms of market capitalization and liquidity in VNAllshare.

- VNMidcap: is a capitalization index that measures the growth of 70 medium-sized companies in VNAllshare.

- VN100: is a market capitalization index combining component stocks of VN30 and VNMidcap.

- VNSmallcap: is a capitalization index designed to measure the growth of small-sized companies in VNAllshare.

- VNAllshare Sector Indices: includes industry indices with VNAllshare's component stocks classified according to the Global Industry Classification Standard (GICS®).

- VNSI: is a price index calculated using the free-float adjusted market capitalization method with the composition of the listed companies with the best sustainable development scores. on HOSE of VN100. Has a real-time calculation frequency of 5 seconds/time. Sector indices: currently, HOSE has 10 sector indices which included:

Sector indices: currently, HOSE has 10 sector indices which included:

- VNFIN: Financial Sector

- VNMAT: Material Sector

- VNIND: Industrial Sector

- VNCONS: Consumers Sector

- VNHEAL: Healthcare Sector

- VNENE: Energy Sector

- VNUTI: Utilities Sectors

- VNREAL: Real Estate Sector

- VNIT: Information Technology Sector

Investment Indices: In November 2019, HOSE has introduced an index which has been modified by HOSE to adapt the investment request of domestic fund companies. Specifically, the Vietnam Leading Financial Index – VNFIN LEAD; Vietnam Financial Select Sector Index – VNFINSELECT and Vietnam Diamond Index – VN DIAMOND. These indexes will be developed by ETFs to attract investors' investment in specific industries and fields.

Trading activity at Ho Chi Minh Stock Exchange[edit]

Trading day[edit]

Trading activity at Ho Chi Minh Stock Exchange is executed from Monday to Friday, except public holidays.

Daily trading schedule[edit]

Matching trading session:

Trading hours: 9:00 – 15:00; Break time 11:30 – 13:00

- 9:00 –  9:15: Opening, periodical matching. Types of orders: ATO, L.O.

- 9:15 – 11:30, 13:00 – 14:30: Continuous matching. Type of order: L.O., MP.

- 14:30 – 14:45: Closing, periodical matching. Types of orders: ATC, L.O.

- 9:00 – 11:30,  13:00 – 15:00: Put through. (Stocks and bonds)

Trading limit[edit]

- Trading limit which applied with stocks and fund certificates is +/-7% and not applied with bonds

- On the first trading day of a new listing stock, the trading limit will be +/-20%.

Types of order[edit]

- Trading order at the beginning (ATO)

- Limit order (LO)

- Market order on HOSE (MP)

- Trading order at the close (ATC)

Listing on HOSE[edit]

Listing requirements: Applied according to Decree 155/2020/ND-CP detailing the implementation of a number of articles of the securities law

No. Criteria Requirement
1 Business Form Joint Stock Company
2 Charter capital actually contributed at the time of registration VND 120 billion (according to Official Letter No. 244/UBCK-PTTT dated January 22, 2021 of the State Securities Commission on guiding the implementation of the Securities Law in 2019)
3 Minimum capital 30 billion VND
4 Trading time on UPCOM Trading on the Upcom trading system for at least 02 years, except for the case where shares have been offered to the public, equitized enterprises

Approved by the General Meeting of Shareholders for listing

5 Financial situation and business activities ROE of the previous year at least 5%

2 consecutive years of profit, no debt overdue for more than 1 year, no accumulated loss

6 Shareholders structure At least 15% of the voting shares held by at least 100 non-major shareholders

In case the charter capital of the organization registering for listing is VND 1,000 billion or more, the minimum ratio is 10% of the voting shares.

7 Shares holding requirements Members of Board, Control Board, Board of Directors, Chief Accountant, CFO and equivalent managerial positions elected by the General Meeting of Shareholders or appointed by the board of directors and major shareholders being related persons of the above subjects must commit to continue holding 100% of the shares owned within 06 months from the first trading date on the Stock Exchange and 50% of these shares within the next 06 months, excluding the number of state-owned shares held by the above individuals
8 Requirements on compliance with the Securities Law The company, the legal representative shall not be handled for violations within 2 years due to the performance of prohibited acts in securities and securities market activities.
9 Consulting securities company Has a securities company that advises on the application for listing registration, unless the organization registering for listing is a securities company.
10 Listing registration documents Sufficient according to regulations

See also[edit]

References[edit]

External links[edit]