Unprofitable listed businesses will not be put under control

The State Securities Commission (SSC) is going to promulgate a document in some days, asking the Hanoi and HCM City bourses to remove the mechanism putting the share items of listed companies that lost money the previous year under control.

Head of the Market Development Department under SSC said that SSC will ask the Hanoi Securities Trading Centre (HASTC) and HCM City Stock Exchange (HOSE) to remove the mechanism of supervision of share items of companies which suffered losses in previous financial years. Signs of warning will be affixed to the share items instead.

The main reason behind the decision, according to Son, is that in fact, the stock market watchdog does not control unprofitable listed businesses. Son said that the word’s of ‘putting under control’ would be accepted only when stock exchanges or trade centres set limitations on the transactions of these share items, or on the price bands of the share items.

In fact, Son said, transactions of the share items of unprofitable companies are still being carried out in normal conditions like all other share items.

However, Son believes that it is still necessary to give warning about the share items, which would give more information to investors, helping them make reasonable decisions.

The regulations on putting unprofitable companies under control have been mentioned in the regulations on stock transaction promulgated by HCM City Stock Exchange and HASTC.

However, the two bourses have been applying different regulations on putting share items under control.

The HCM City bourse stipulates that share items will be put under control if there is minus business results, while the Hanoi bourse does this if businesses have minus post tax profit. Regarding the control mechanism, the former puts share items under control right after businesses show financial reports with minus business results, while the latter only does this after the loss is audited and confirmed by auditing firms.

Son said that the document to be promulgated by SSC will set a single and unique legal framework for both the bourses, thus helping bring clear information to investors.

VietNamNet, DTCK

>   CLSC: Violation of trading regulation (10/04/2009)

>   PHS: Sets up transaction office (10/04/2009)

>   HSI: Extension for submitting 2008 financial statement (10/04/2009)

>   PNJ: Supplement of contents of a ballot (10/04/2009)

>   RHC: Annual shareholders’ meeting (10/04/2009)

>   HSI: Annual shareholders’ meeting (10/04/2009)

>   KSH: Annual shareholders’ meeting (10/04/2009)

>   VHC: Extension for submitting 2008 financial statement (10/04/2009)

>   VNA: Notice of Annual General Meeting (10/04/2009)

>   CAD: Notice of Annual General Meeting (10/04/2009)