Killing two birds with one stone

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The move came as Saigon-Quy Nhon Mineral (SQC), listing on Hanoi Stock Exchange (HNX), and Saigon Telecommunication and Technologies Corp. (SGT), listing on Ho Chi Minh Stock Exchange (HoSE) announced their delisting plans late last month with the reason that “downward stock market incorrectly reflects companies’ actual value”.

The State Securities Commission (SSC) recently sent a document to HoSE and HNX, in which required them to intensify supervising those two enterprises’ information disclosure and de-list processes, tending to avoid negative influences on market’s sentiment.

The market watchdog also required the two exchanges to clarify SQC and SGT’s business status, demanding the two companies not to unveil any sensitive messages, which is not official.

The delisting news from SQC and SGT actually had deepened investors’ already low sentiment given market’s downward trend, particularly after the major brokerage firm Kim Long Securities had also unveiled the plan of withdrawing from securities business one month ago.

On the other hand sparked concerns among regulators that listing companies are too free in announcing their intention, which could disturb the local market.

“The stock market is not a simple market where anyone can come or go at their will. They must obey certain rules to minimise negative impacts on the market,” said Quach Duc Phap, chairman for Vietnam Association of Financial Investors. 

Lawmakers meanwhile are adding new regulations on delisting. A listed company must get more than 50 per cent votes from minor shareholders if they want to delist, and is restricted to delist within two years from the debut, according to the drafting decree on guidance executing the new Law on Securities, expected to come into effort on July 1.