The Ha Noi Stock Exchange has solidified its role in raising capital for businesses and the State budget, with the bourse celebrating five years since its establishment. — baodautu

HA NOI (Biz Hub) — The Ha Noi Stock Exchange has solidified its role in raising capital for businesses and the State budget, with the bourse celebrating five years since its establishment.

The exchange, launched in 2009, has succeeded in developing three separate markets, including the stock exchange, unlisted public company market (UPCoM) and bond market, said Tran Van Dung, the exchange's general director, at its 5th anniversary celebration yesterday.

Dung said the number of companies listing on the northern bourse had increased 42 per cent from 2009, reaching 364 companies. The value of listings had also risen by 140 per cent during the period, totaling VND90 trillion (US$4.3 billion).

Meanwhile, total market capitalisation had reached more than VND120.5 trillion ($5.71 billion), while companies had raised VND45 trillion ($2.1 billion) over the past five years by issuing additional shares to expand operations.

Listings had also helped boost the transparency of firms, with about 97 per cent of listed companies regularly updating information on their websites.

Trading has also seen improvement, with market value rising from VND127 billion ($6 million) per session from 2005 to 2009, and to VND530 billion ($25.1 million) between 2010 and 2013. Value of trades this year also climbed to VND768 billion per day in the first five months.

The exchange has also developed seven new indices that have diversified the base of products traded on the market: the HNX30, tracking the top 30 shares by market value and liquidity, the HNX Free Float Index, three sector indices and two sets of indices based on the scale of shares.

Regarding UPCoM development, the number of companies registered for trading rose to 147 with total market capitalisation reaching VND28.93 trillion ($1.37 billion), seven times higher than in 2009.

To date, seven companies have moved their listings to the stock exchange.

The Ha Noi Stock Exchange has also succeeded in expanding the government bond market which raises funds for the State budget. Over the past five years, the exchange has raised VND586 trillion ($27.8 million) worth of bonds through auctions. The value of bond listings on the secondary market reached VND625 trillion ($29.6 million) this year through May, four times higher than in 2009.

The exchange also enabled IPOs (initial public offering) for 83 State enterprises, raising VND6.784 trillion ($321.5 million), including large enterprises like Vietnam Steel Corporation, PV Oil and Bao Viet Holdings.

Speaking at the ceremony, Prime Minister Nguyen Tan Dung said the stock market was an important and effective channel to raise capital, pointing out total capital raised through the stock market made up more than 20 per cent of total investment. —VNS

The PM also presented the exchange with the emulative flag of the Government to mark the occasion.

The exchange also unveiled an investor corner at its headquarters in Hanoi which provides investors with documents and knowledge about the stock market and financial investment. — VNS