New stocks on HoSE will temporarily trade on HNX

Monday, Apr 12, 2021 06:50

The trading board in HoSE's buildings. — Photo

Companies that want to list on the Ho Chi Minh Stock Exchange (HoSE) will temporarily trade on the Ha Noi Stock Exchange (HNX) as a temporary solution to the overload issue occurring on HoSE since the end of last year.

The State Securities Commission (SSC) of Viet Nam recently instructed HOSE and HNX as well as the Viet Nam Securities Depository (VSD) to implement temporary regulations on listing and conversion processes to reduce the load on HOSE's trading system.

Accordingly, enterprises wishing to list during this period can submit registration documents to HNX or HOSE.

For enterprises that want to list new shares or transfer their listing from HNX to HOSE, HOSE will receive and process their documents.

After assessing and issuing the listing decisions, these shares will be temporarily traded on HNX.

Once the congestion problem is solved, these companies are allowed to transfer transactions back to HOSE without reviewing their profiles.

Regulations such as trading mechanisms, transaction supervision, listing management, reporting and information disclosure for businesses whose shares are listed on HOSE and are transferred to HNX also apply for companies that listed on the HNX.

HOSE and HNX will work together to supervise the transactions of these stocks to ensure continuity in supervision.

HOSE, HNX and VSD inform enterprises and investors about the temporary suspension of trading of new shares on HOSE and the difference between the trading mechanism of these stock exchanges in the process of transferring the trading of listed shares to HNX from HOSE.

The above provisions apply from April 8 until the SSC releases a new notice and guidance. — VNS

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