Under the new structure, HOSE will focus on operating the stock market and the HNX will focus on derivatives and bond markets.
Vietnam’s Finance Ministry has reportedly announced structural changes to the country’s capital markets.
Under a draft decision submitted to the Prime Minister, HOSE (the Ho Chi Minh Stock Exchange) and the HNX (Hanoi Stock Exchange) will become sub-companies of the Vietnam Securities Exchange – a newly-established entity.
Under the new arrangement, HOSE will solely focus on operating the stock market, while the HNX will focus on the derivatives and bond markets.
The move is aimed at improving supervision of listed companies and market participants, and enhancing technological facilities, the report said.
Under the draft, the Vietnam Securities Exchange will develop overall policies and rules, plan the launch of new products, and manage the capital, asset and finances of member companies in accordance with existing regulations.
The member companies – i.e. HOSE, the HNX and their relevant units – will operate and monitor their markets and explore new products as directed by the Vietnam Securities Exchange.
The Vietnam Securities Exchange will have VND 3 trillion (USD 129 million) in charter capital, made up from HOSE’s VND 2 trillion and HNX’s VND 1 trillion.
The Ministry of Finance will submit a draft plan to the Prime Minister in 2023.
Earlier this month, HOSE announced a plan to develop a new index for foreign-invested firms, called the Vietnam Diamond Index. It will comprise 10-20 listed companies in which foreign investment is capped.
Index compiler FTSE is due to announce the results of a review of Vietnam’s capital markets on Thursday (26 September). While an upgrade to emerging market status would further attract international investment flows to the country, the change is seen as unlikely by market participants.
Source by Regulation Asia.