HOSE has denied rumor about leaders’ resignation

Rumour spread throughout the stock market late last week that HOSE’s high-ranking officials had resigned from their posts. However, HOSE immediately denied this.

HOSE said the agency, together with the Hanoi Stock Exchange (HNX), the Vietnam Securities Depository and Clearing Corporation (VSDC) and market members, are testing the operation of the integrated information technology system (KRX system) as planned.

HOSE recommended that investors should be cautious in collecting information and should seek official information on www.hsx.vn.

The head of the agency is acting chair Nguyen Thi Viet Ha. The current board of management includes Tran Anh Dao, deputy CEO in charge of the executive board, and two other deputy CEOs – Nguyen Vu Quang Trung and Ngo Viet Hoang Giao. Dau Khac Trinh is head of the supervisory board.

HOSE is considering building a strategy for 2022-2026 based on the development strategy set by the Vietnam Stock Exchange (VNX). It will coordinate with involved parties to implement a plan on receiving listed companies from HNX in accordance with the regulation on the stock market rearrangement.

The agency vows to organize stable and safe securities transactions and operate KRX system on schedule. HOSE has stated that the project will go live on December 11 before becoming officially operational by the end of 2023.

Ha affirmed that if the market members are still not ready, HOSE will report this to the Ministry of Finance (MOF) and the State Securities Commission (SSC) for solutions.

KRX system is hoped to create a breakthrough on integrating the securities transaction system in Vietnam, with many features set up which will help upgrade the Vietnamese stock market, and with important solutions, such as day trading (T+0), short selling and option contract.

The predecessor of HOSE was the HCMC Securities Transaction Center. It was turned into HOSE under the Prime Minister’s Decision 599 dated May 11, 2007. This is a state-owned legal entity, organized under the model of a single-member limited company.

The operation of the exchange heavily depends on market liquidity, because its main source of revenue comes from transaction fees.

In 2022, HOSE reported a 23 percent reduction in total revenue to VND2.5 trillion because of slides in the market. Its post-tax profit was VND1.946 trillion, down 23 percent from the record high profit in 2021.

The rumor about the resignation of some HOSE’s leaders had serious impact on the stock market late last week. The VN-Index on September 29 morning dropped by 40 points with the prices of a many shares falling to the floor price levels.

Manh Ha