Vietnam to Transform Stocks Exchanges into Limited Firms

The Ministry of Finance has issued a Decree No.29/2010/TT-BTC on shifting the Hochiminh City Stock Exchange (HOSE), the Hanoi Stock Exchange (HNX) and the Securities Depositary into one-member limited liability firms.

 

This is a move to restructure the local securities market and stimulate market activities, said Nguyen Doan Hung, Deputy CEO of the State Securities Commission.

 

The exchanges and the depositary are allowed to mobilize funds to develop technical infrastructure, but they must ensure high solvency, the ministry said on its website. They can contribute capital into economic institutions in providing market information services and infrastructure development services.

 

The market for unlisted public companies (UpCom) and the dedicated bond market will be developed at the HNX.

 

Hung said the SSC is also considering allowing margin trading, repo, multi-account holding, whole-day and intra-day trading.

 

Changes in trading regulations are expected to encourage more investors to the market and draw more foreign investment. (www.mof.gov.vn, Investment), Investment)