The move is aimed to ensure greater efficiency and transparency of Vietnam’s stock market.
Prime Minister Nguyen Xuan Phuc has agreed to establish the Vietnam Exchange (VNX) on the basis of merging the Hanoi Stock Exchange (HNX) and the Ho Chi Minh Stock Exchange (HoSE), which set to take effect on February 20, 2021.
The move is aimed to ensure greater efficiency and transparency of Vietnam’s stock market.
Under the PM’s decision, the new stock exchange will headquarter its office in Hanoi and start operation with a registered capital of VND3 trillion (US$130 million), while holding 100% stake at HNX and HoSE.
The Vietnam Stock Exchange operates under the form of single member limited company and 100% owned by the Ministry of Finance.
HNX and HoSE are subsidiaries of VNX but operate independently with different legal status.
Main tasks of the VNX include drafting regulations on listing and transactions in the stock market, supervising the operation of HoSE and HNX in compliance with securities law, and setting up plan to develop the IT system, new technologies and products for the stock market.
Under the management of the VNX, the HNX is responsible for government bond transactions and management of the derivatives market, while all shares listed in the market will be moved to the HoSE.
The HoSE is currently home to large companies while the Hanoi bourse houses smaller companies.
This article was originally published in Hanoitimes