The Ministry of Finance has suggested reducing the trading board lot size from 100 to 10 and providing favourable conditions for companies to list again on the Ho Chi Minh City Stock Exchange.
The Ministry of Finance (MoF) has sent an offical dispatch to the State Securities Commission (SSC) on reviewing essential measures to minimise trading congestions.
Specifically, from July 5, the fresh trading system of the Ho Chi Minh City Stock Exchange (HSX) has officially been put into operation. According to the MoF, the congestion has been basically addressed, stabilising market sentiment, and demonstrating the drastic direction and management of the MoF.
To further strengthen the role of securities market management and administration, the MoF required the SSC to follow the below nofitications:
(1) Directing both local and foreign-invested securities companies, especially those holding large market shares to report on their technical system infrastructure in a bid to ensure stable and smooth trading.
(2) Reviewing the new trading system. Moreover, HSX is encouraged to receive new applications for stock listing registrations. At the same time, creating favourable conditions for listed companies to move their listings from the Hanoi Stock Exchange to HSX, especially those affected by congestions at HSX. Previously, HSX has increased the board lot size from 10 to 100 to reduce the number of trading orders. However, as the congestion issue has been addressed, the MoF urged the SSC to return the lot size to normal to lower barriers for investors and ensure their best interest.
(3) Updating the latest information and promptly announcing policies to stabilise market sentiment and bring the latest, most transparent data to investors.
On the other hand, the forthcoming instalment of the trading system of the Korean Exchange, which is due in August, will provide HSX better and smoother infrastructure.
By Tri Lam