Newly-listed firms on HoSE to temporary switch to HNX
This is a short-term move to help ease the current overload issue at Ho Chi Minh Stock Exchange (HoSE).
Firms newly-listed on the HoSE would temporarily move to the HNX for stock transaction, according to Chairman of the State Securities Commission (SSC) Tran Van Dung.
|Local investors at a securities center in Hanoi. Photo: Kinhtedothi|
The move was revealed in SSC’s recent document No.1339/UBCK-PTTT on measures to address the overload issue on HoSE, as a surge of transaction orders are forcing the stock exchange to halt market trading.
The stock market watchdog also noted that enterprises looking to go public during this period could choose either the HoSE or HNX. Those firms wanting to list stocks on the HoSE or leave HNX for HoSE, if approved, still theirs would be temporarily traded on the HNX.
“Once the overload issue is fully solved, these stocks would be automatically moved back to the HoSE,” stated the SSC, saying the move would take effect from April 8 until further notice.
During the time of temporarily listing on the HNX, the mechanisms of transaction, supervision, reporting and information declaration should be the same as those already on the stock exchange.
“This is a short-term move to help ease the current issue at HoSE. Those enterprises moving to the HNX as part of the solution still belong to the HoSE,” said Dung.
“Switching stocks from the HoSE to HNX would not increase the stock volume on the former and indirectly reduce the pressure on HoSE’s operation in the future,” he added.
So far, six public firms have moved their stock listings to the HNX, including Aquatex Ben Tre (HOSE: ABT), Bibica Corporation (HOSE: BBC), Southern Seed Corporation (HOSE: SSC), Vietnam Fumigation Company (HOSE: VFG), VNDirect Securities Company (HOSE: VND) and Vietnam National Seed Group (HOSE: NSC).
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