Prime Minister Nguyen Xuan Phuc on January 7 approved the proposal to establish the Vietnam Stock Exchange on the basis of merging the Hanoi Stock Exchange (HNX) and the Ho Chi Minh Stock Exchange (HoSE), the governmental portal reported.
Illustrative photo.
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The Vietnam Stock Exchange, which would be headquartered in Hanoi, is operated under the form of single member limited company and 100% owned by the Ministry of Finance.
Additionally, HNX and HoSE are subsidiaries of Vietnam Stock Exchange but operate independently with different legal status.
The would-be stock exchange will have charter capital of VND3 trillion (US$128.64 million), which would be transferred from charter capital of HNX and HoSE. During the operation, an increase or decrease of charter capital of the Vietnam Stock Exchange is subject to the PM’s approval.
Main tasks of the Vietnam Stock Exchange include drafting regulations on listing and transactions in the stock market, at the same time supervising the operation of HoSE and HNX in compliance with securities law.
The merger has been planned for years, but few details on the progress have been made public so far.
Last July, the Ministry of Finance submitted to the government proposal for merging the two stock exchanges. Under the plan, all shares listed in the market would be moved to the HoSE, while the government bond and derivatives markets are placed in Hanoi.
The HoSE now is home to the largest companies while the Hanoi bourse houses smaller companies.
