Vietnam SSC Publicizes Roadmap for Small Listed Firm to Move to Smaller Bourse

The State Securities Commission (SSC), Vietnam’s stock market watchdog, Tuesday announced a specific roadmap for Ho Chi Minh City Stock Exchange-listed companies with a registered capital of less than VND80 billion (US$4.7 million) to move to the northern smaller bourse.

 

Listed firms with a capital of VND80 billion will have more six months since February 8 to boost their capital. If not, their stocks will be moved to the Hanoi Securities Trading Center.

 

Companies which do not have plans to scale up their capital must shift their listings to the HASTC within three months since February 8.

 

The HASTC-listed firms with capital of below VND10 billion (US$588,235) will also be moved to the market for unlisted shares, or UPCOM market. If the UPCOM market is not launched after three months since February 8, these firms’ shares will be put in the black-list on the bourse.

 

Currently, 46 stocks on the HOSE and five stocks on the HASTC are short-listed for the delisting, the exchange reported.

 

Nguyen Son, head of the SSC’s Market Development Division Son, said the listing shift is aimed to restructure the local stock market by 2010.

 

The slumping stock market, which fell nearly 70 per cent last year and may fall further this year, will impose lot of difficulties for enterprises to raise new fund. (www.ssc.gov.vn, Securities Investment, Vneconomy), Securities Investment, Vneconomy)