HoSE to hose down its rivals investors

The HoSE still has a number of years before it fully matures

“We are seeing many major changes in terms of structure, mechanisms and organisation at the HoSE,” said Deputy Prime Minister Nguyen Sinh Hung. The exchange, previously under the State Securities Commission, will operate as a one-member limited liability company with chartered capital of VND1 trillion ($62.3 million) under the Securities and Enterprise Laws. “The good news is that we will be more independent in terms of finance and human resources and have more rights to approve or cancel listings, trading membership as well as inspect and supervise securities trading activities of members,” said HoSE director Tran Dac Sinh.
HoSE’s main income is from collecting $1,250 membership fees and 20 per cent of the daily trading fees from each of its members. Korea Exchange (KRX), which has been a close HoSE partner since 1996, is eager to tighten relationship with its Ho Chi Minh City counterpart. Jae-Il Kim, KRX’s Management Strategy Division executive director, said: “We are very glad to see the fast growth of the Ho Chi Minh City stock market during the last years and we believe that it will grow faster than in the coming years with this new change.”
“We are discussing with the HoSE about bringing its people to South Korea for experience sharing especially about government bonds being a concern for the Vietnamese Government,” he added.
Bursa Malaysia representative Adhha Abdullah said: “In HoSE’s case, we expect that it will grow faster than us and achieve greater success considering the bigger potential of Vietnam’s economy. Thus, we hope to see the inter-trade among many countries in the region soon when we all help each other to integrate into the regional financial market.” He said Bursa Malaysia took about 12 years to fully mature.
HoSE began its first trading session under its former name, Ho Chi Minh City Securities Trading Centre, with two listed companies, REE and SAM, in July 2000. At present, HoSE has 110 listed companies with a total market capitalisation of nearly $14 billion with about 49 securities firms.