Companies that want to list their shares on the Hochiminh Stock Exchange (HoSE) will temporarily switch to trading on the Hanoi Stock Exchange (HNX) in an attempt to address a system error frequently clogging trade on HoSE.
The move is part of temporary measures to ease the overload on the southern bourse, according to a dispatch recently approved by Tran Van Dung, chairman of the State Securities Commission of Vietnam, and sent to HoSE, HNX and the Vietnam Securities Depository, reported Tuoi Tre newspaper.
From April 8 until further notice, companies planning to list their shares on the local stock market during this period can opt for HNX or HoSE.
For newly-listed firms or those that want to switch their listing from HNX to HoSE, the HCMC bourse will receive their requests and appraise the applications. If HoSE approves a firm’s application and licenses its listing, its shares will be temporarily transacted on HNX.
Once the system error is tackled completely, the firms will return to HoSE without requiring their listing applications to be reviewed again.
Policies related to transactions, trade monitoring, listing management and information release applied to firms whose shares on HoSE were approved to be traded on HNX will remain the same as those currently applied to firms listed on HNX.
In the upcoming period when more effective measures to address the system error are available, companies will see optimal conditions to get back on the HoSE, the head of the State Securities Commission of Vietnam added.
