VietNamNet Bridge - The wave of commercial banks entering the bourse was triggered earlier this year when 564 million shares of VIB, with charter capital of VND5.644 trillion, was put on UpCom on January 9.


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Three other banks, including Kien Long Bank, Techcombank and TP Bank, are also going to list shares on the bourse. Their shares have been accepted for depositing at the Vietnam Securities Depository Center and have received trading codes. 

Meanwhile, the board of directors of Orient Bank (OCB) has approved the plan to list shares at a stock exchange, possibly the HCMC Stock Exchange (HOSE). 

Maritime Bank has finalized the list of shareholders in the first working week after Tet holiday to prepare for joining UpCom. VP Bank is consulting with its shareholders on depositing shares and listing on UpCom. Other banks are believed to make hectic preparation for the shares listing, though they still need to consider the exact time.

The wave of commercial banks entering the bourse was triggered earlier this year when 564 million shares of VIB, with charter capital of VND5.644 trillion, was put on UpCom on January 9.

A banker admitted that banks are moving ahead with listing plans because they have no more reasons for delays.

First, having their shares listed on the bourse is what commercial banks have to commit in their business development strategies and bank restructuring plans for 2011-2016. The deadline for the listing is 2016.

Second, the regulations set by the Ministry of Finance (MOF) and other legal documents all put pressure on banks. MOF’s Circular 180 stipulates that public companies must complete the procedures for listing shares on UpCom system within one year since the day the circular takes effect (the circular doesn’t explain why banks have to list on UpCom, not at HOSE or the Hanoi Stock Exchange – HNX).

Third, banks admitted that they must list shares to improve their operation and images, though they will have to face big changes (they will have to follow regulations on information exposure and spend money to implement regulations).

An analyst said that listing shares is an essential step for bankers, considered a new milestone in the banking system development history, after the first restructuring process.

Most banks choose to list shares on the bourse on UpCom instead of the two official bourses – HOSE and HNX.

Asked about this, a senior official of the State Securities Commission (SSC) compared Vietnamese banks with people who have just experienced eye surgery and need to try step by step to adapt to the sunlight. They still need to wear sunglasses before they can go out without glasses in the future. 

Banks need to list shares on UpCom first, the trading floor which sets lower requirements, before going further – listing on HOSE or HNX.

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