The State Securities Commission (SSC) has promised to have the information about ATIP (ATI Petroleum) shares clarified after the government on August 8, 2007 requested that the Ministry of Finance and SSC provide faithful information about ATIP to investors.
According to SSC, ATIP is a foreign enterprise, established and now operating in Nevada state in the US. On July 4, 2001, ATIP got an investment licence from the Ministry of Planning and Investment for a joint venture project with PetroVietnam under the mode of PSC (production sharing contract) on exploring, developing and producing oil and gas at block No 102 and 106 on Vietnam’s continental shelf. Later, ATIP sold a part of the joint venture to Malaysia’s Petronas, and now ATIP holds 10% of total shares in the joint venture.
On January 26, 2007, Chairman of ATIP signed Decision No 01/QD on internal share issuance to 93 staffs. After buying ATIP shares, the staffs sold the shares to outside investors, and the shares have been available on the market.
SSC has checked information about the shareholders and found out that as of March 12, 2007, the number of investors who held ATIP shares was 251.
Recently, mass media have reported that ATIP shares are being listed on NYSE – Euronext, and that ATIP promised to give 10,000 ATIP shares as bonus to the national soccer squad.
The Securities Law, Enterprise Law and current guiding documents do not mention the fact that 100% foreign owned companies, established and operating in other countries, can offer shares for sale in Vietnam. However, in fact, ATIP shares have been transferred to 250 investors in Vietnam.
In order to protect the benefit of Vietnamese investors and avoid possible risks, SSC has two times asked ATIP to expose information about capital and financial situation, business performance and operation regulations of ATIP, as well as the transactions on NYSE – Euronext.
However, ATIP had not provided necessary information by August 10, 2007, except Dispatch No 10 to SSC dated August 10, 2007, saying that the company was preparing necessary documents. As the chairman of ATIP was away on business and would return in mid August, the company promised to gather all necessary documents and give explanations to the questions put by SSC at that time.
On August 17, 2007, ATIP sent a document to SSC, providing some details about the interested issues relating to the listing of ATIP on NYSE – Euronext. SSC thinks that it still needs to check the information before making it public; therefore, it plans to have a working session with ATIP to discuss related issues
Prior to that, SSC took an inspection tour of ATIP. The company organised workshops introducing its operation activities.
Source: VNE
Showing posts with label SSC. Show all posts
Showing posts with label SSC. Show all posts
Wednesday, August 29, 2007
Tuesday, August 14, 2007
Low fines turn securities law into a toothless tiger
Authorities have recently punished a number of individuals and organisations for violating regulations in securities transactions, but analysts say the penalties haven't been strict enough.
Investors were eager when the State Securities Commission (SSC) first issued a decision to punish an investor in HCM City in late June with a fine of VND30mil (US$1,875) for entering into collusion to distort supply and demand on the market.
Less than a month later, two other individuals in the city were fined VND60mil ($3,750) and VND100mil ($6,250) for similar acts.
Among organisations, the Vietcombank, BIDV and Sai Gon Securities companies have were each fined VND10-20mil ($625-$1,250) for breaking securities management (i.e., registration, deposit, or payment) and reporting regulations.
Foreign companies were no exception. Indochina Capital was fined VND10mil for not conforming with regulations on internal transactions.
On July 25, the SSC slapped the Thien Viet Securities Co a VND50mil ($3,125) fine for its delay in publicising a change in its general director position.
On Monday, it announced a VND20mil ($1,250) fine on the Ba Ria-Vung Tau Housing Development Co for failure to make timely disclosures.
The SSC has taken great strides to make the market more transparent. However, the penalties it has issued so far have been too lightweight to have a real impact on investors, according to analysts, especially major players for whom a minor fine is mere chicken feed.
"The heaviest penalty for breaking securities laws or regulations is now only VND50mil. It's not a reasonable level," said SSC chief inspector Hoang Duc Long.
The commission is asking the Government to consider stricter penalty levels, he said, with some serious violations even subject to penal liability.
Authorities, meanwhile, face challenges in discovering all violations, Long said.
"In order to detect a lawbreaker, we have to check over 250,000 accounts on the market, and we only have about 20 inspectors," said Long.
"There have also been cases in which auditors have released inaccurate information or even colluded with enterprises to falsify reports. It's really a big concern."
Source: VNS
Investors were eager when the State Securities Commission (SSC) first issued a decision to punish an investor in HCM City in late June with a fine of VND30mil (US$1,875) for entering into collusion to distort supply and demand on the market.
Less than a month later, two other individuals in the city were fined VND60mil ($3,750) and VND100mil ($6,250) for similar acts.
Among organisations, the Vietcombank, BIDV and Sai Gon Securities companies have were each fined VND10-20mil ($625-$1,250) for breaking securities management (i.e., registration, deposit, or payment) and reporting regulations.
Foreign companies were no exception. Indochina Capital was fined VND10mil for not conforming with regulations on internal transactions.
On July 25, the SSC slapped the Thien Viet Securities Co a VND50mil ($3,125) fine for its delay in publicising a change in its general director position.
On Monday, it announced a VND20mil ($1,250) fine on the Ba Ria-Vung Tau Housing Development Co for failure to make timely disclosures.
The SSC has taken great strides to make the market more transparent. However, the penalties it has issued so far have been too lightweight to have a real impact on investors, according to analysts, especially major players for whom a minor fine is mere chicken feed.
"The heaviest penalty for breaking securities laws or regulations is now only VND50mil. It's not a reasonable level," said SSC chief inspector Hoang Duc Long.
The commission is asking the Government to consider stricter penalty levels, he said, with some serious violations even subject to penal liability.
Authorities, meanwhile, face challenges in discovering all violations, Long said.
"In order to detect a lawbreaker, we have to check over 250,000 accounts on the market, and we only have about 20 inspectors," said Long.
"There have also been cases in which auditors have released inaccurate information or even colluded with enterprises to falsify reports. It's really a big concern."
Source: VNS
Monday, August 13, 2007
OTC market to be monitored
Delegates who attended a seminar recently organised by the State Securities Commission (SSC) in Hanoi all shared the view that it’s time the over-the-counter market in Vietnam should be monitored.
According to SSC’s draft plan, unlisted public companies will have to register and deposit their shares at the Securities Depository Centre through a securities company which is a depository member.
Investors who want to carry out transactions of OTC shares have to open accounts at a securities company. Transactions will still be carried out through negotiations but all selling and buying orders will have to be carried out through their accounts at securities companies. These orders will then be transferred to a new system for regulating OTC transactions at the Hanoi Securities Trading Centre, allowing brokers to gain access, find buyers and sellers and make deals for investors.
HaSTC will collect results of transactions and then transferred to the depository centre within the same day for accounts’ balance.
Regulations on transactions on the OTC market will not be as tight as those on listed shares. There are no regulations on reference price, price fluctuation margin and trading unit. Investors can buy and sell one kind of stock within one trading day and payment settlement date will be T + 3, like the settlement applied to current transactions of listed stocks.
Experts hope that trading OTC shares through brokerages will help reduce risks for investors.
The SSC plans to select some public companies working in the financial, banking, insurance and securities sectors to make a trial run of the new OTC procedures in November before operating officially in early 2008.
Representatives of securities companies including Bao Viet, Thang Long and SSI all welcomed the SSC’s plan. However, they voiced their concerns over the possibility that securities companies will be swindled of their commissions for OTC trades by investors if there are no regulations referencing prices and price fluctuation margins.
“If there is no price fluctuation margin, investors may collude with each other to set up lower prices in order to cheat on commission fees.
Some have proposed a price fluctuation margin of 20% while some others insist that there should be reference prices. This will help prevent artificial inflated transactions, protecting small, individual investors and ensure a basis calculating fees and commissions for securities companies.
A Bao Viet Securities representative also proposed a common par value of VND 10,000 for shares of public companies as of now the par value of shares of public companies varies from VND 10,000, VND 100,000, VND 1 million.
All delegates urged the SSC to pour proper investment into a modern infrastructural facilities and information technology for the monitoring of this OTC market so as to ensure that it operates smoothly, meeting the market’s development for at least five years.
They also asked SSC to encourage public companies to fulfill their responsibilities in information announcements to investors, ensuring fairness, publicity and transparency in securities market activities.
The monitoring of transactions of shares of unlisted public companies can be considered as one of the measures to strengthen the supervision of the securities market so as to help ensure a health and sustainable development of Vietnamese stock market.
Source: VNE
According to SSC’s draft plan, unlisted public companies will have to register and deposit their shares at the Securities Depository Centre through a securities company which is a depository member.
Investors who want to carry out transactions of OTC shares have to open accounts at a securities company. Transactions will still be carried out through negotiations but all selling and buying orders will have to be carried out through their accounts at securities companies. These orders will then be transferred to a new system for regulating OTC transactions at the Hanoi Securities Trading Centre, allowing brokers to gain access, find buyers and sellers and make deals for investors.
HaSTC will collect results of transactions and then transferred to the depository centre within the same day for accounts’ balance.
Regulations on transactions on the OTC market will not be as tight as those on listed shares. There are no regulations on reference price, price fluctuation margin and trading unit. Investors can buy and sell one kind of stock within one trading day and payment settlement date will be T + 3, like the settlement applied to current transactions of listed stocks.
Experts hope that trading OTC shares through brokerages will help reduce risks for investors.
The SSC plans to select some public companies working in the financial, banking, insurance and securities sectors to make a trial run of the new OTC procedures in November before operating officially in early 2008.
Representatives of securities companies including Bao Viet, Thang Long and SSI all welcomed the SSC’s plan. However, they voiced their concerns over the possibility that securities companies will be swindled of their commissions for OTC trades by investors if there are no regulations referencing prices and price fluctuation margins.
“If there is no price fluctuation margin, investors may collude with each other to set up lower prices in order to cheat on commission fees.
Some have proposed a price fluctuation margin of 20% while some others insist that there should be reference prices. This will help prevent artificial inflated transactions, protecting small, individual investors and ensure a basis calculating fees and commissions for securities companies.
A Bao Viet Securities representative also proposed a common par value of VND 10,000 for shares of public companies as of now the par value of shares of public companies varies from VND 10,000, VND 100,000, VND 1 million.
All delegates urged the SSC to pour proper investment into a modern infrastructural facilities and information technology for the monitoring of this OTC market so as to ensure that it operates smoothly, meeting the market’s development for at least five years.
They also asked SSC to encourage public companies to fulfill their responsibilities in information announcements to investors, ensuring fairness, publicity and transparency in securities market activities.
The monitoring of transactions of shares of unlisted public companies can be considered as one of the measures to strengthen the supervision of the securities market so as to help ensure a health and sustainable development of Vietnamese stock market.
Source: VNE
Thursday, August 02, 2007
OTC transactions to be put under control in early 2008
OTC share transactions will be put under control once the project on organizing and managing the transactions of public companies’ unlisted securities is completed.
The State Securities Commission (SSC) said that it has consulted with relevant ministries over the project and will open the draft for collecting opinions from securities investors in early August before bringing the project into effect.
If everything goes smoothly, transactions of OTC securities under the new scheme will be carried out in the trial basis in October, and officially applied in early 2008.
According to SSC, the securities to be put under the new scheme are the shares of public companies which have registered at state management agencies as stipulated by the current laws. These shares items will be granted codes. Investors will carry out transactions through securities companies based on their accounts to be opened at securities companies.
Under the new transaction scheme, investors will have more opportunities to access official information sources, make payment under favourable methods and minimize risks.
Currently, the preparatory works for the new transaction scheme have been kicked off at the Hanoi Securities Trading Centre. The main principle of the new scheme is to ensure the simplicity in making transaction, while allowing remote transactions which aims to create more favourable conditions for investors.
According to SSC, more than 600 companies have sent files for registering public companies. However, the number of companies completing the registration procedures remains modest.
The problem lies in the fact that the documents guiding the registration were just promulgated in April, which did not give enough time to companies to have their financial reports audited. SSC has to apply a flexible policy, which allows companies to make registration first, and then expose information to investors. The auditing results will be announced later.
June 30, 2007 was the deadline for public companies to make registration at SSC.
Source: VNE
The State Securities Commission (SSC) said that it has consulted with relevant ministries over the project and will open the draft for collecting opinions from securities investors in early August before bringing the project into effect.
If everything goes smoothly, transactions of OTC securities under the new scheme will be carried out in the trial basis in October, and officially applied in early 2008.
According to SSC, the securities to be put under the new scheme are the shares of public companies which have registered at state management agencies as stipulated by the current laws. These shares items will be granted codes. Investors will carry out transactions through securities companies based on their accounts to be opened at securities companies.
Under the new transaction scheme, investors will have more opportunities to access official information sources, make payment under favourable methods and minimize risks.
Currently, the preparatory works for the new transaction scheme have been kicked off at the Hanoi Securities Trading Centre. The main principle of the new scheme is to ensure the simplicity in making transaction, while allowing remote transactions which aims to create more favourable conditions for investors.
According to SSC, more than 600 companies have sent files for registering public companies. However, the number of companies completing the registration procedures remains modest.
The problem lies in the fact that the documents guiding the registration were just promulgated in April, which did not give enough time to companies to have their financial reports audited. SSC has to apply a flexible policy, which allows companies to make registration first, and then expose information to investors. The auditing results will be announced later.
June 30, 2007 was the deadline for public companies to make registration at SSC.
Source: VNE
Tuesday, July 31, 2007
SSC licenses two banks for securities services
Vietnam's State Securities Commission (SSC) said on Monday it has licensed JPMorgan Chase and Far East National Bank to offer securities depository services on its fast-expanding stock markets.
The Ho Chi Minh City branch of each of the banks was allowed to take the deposits as from last Friday, stock market watchdog SSC said in two separate statements.
The licensing took to six the foreign banks allowed to offer securities depository services in the southeast Asian country, after Citigroup, Deutsche Bank, HSBC and Standard Chartered Plc.
Another two state-run banks, Vietcombank and Vietindebank, have also been providing the service, SSC data showed.
The Ho Chi Minh Stock Exchange, Vietnam's main stock market with 109 listed companies, has the fastest rising index among Asian stock markets in the first quarter of 2007, after a surge of 144.5 percent last year.
On Monday the index lost 1.6 percent to close at 925.44 points. It was still a rise of 23 percent from the end of 2006. The market's capitalisation stood at $12.3 billion.
In the capital Hanoi a smaller over-the-counter market <.HASTCI> has 87 companies listed with a total capitalisation of $4.8 billion.
Foreign investors have raised their investment in Vietnamese securities to $5 billion as of early last month, from $3 billion to $4 billion in March, industry reports said.
The communist-run country caps foreign ownership in listed companies at 49 percent and 30 percent in listed banks.
Vietnam's central bank has forecast foreign indirect investment would rise to $5.5 billion by the end of this year.
Source: Reuters
The Ho Chi Minh City branch of each of the banks was allowed to take the deposits as from last Friday, stock market watchdog SSC said in two separate statements.
The licensing took to six the foreign banks allowed to offer securities depository services in the southeast Asian country, after Citigroup, Deutsche Bank, HSBC and Standard Chartered Plc.
Another two state-run banks, Vietcombank and Vietindebank, have also been providing the service, SSC data showed.
The Ho Chi Minh Stock Exchange, Vietnam's main stock market with 109 listed companies, has the fastest rising index among Asian stock markets in the first quarter of 2007, after a surge of 144.5 percent last year.
On Monday the index lost 1.6 percent to close at 925.44 points. It was still a rise of 23 percent from the end of 2006. The market's capitalisation stood at $12.3 billion.
In the capital Hanoi a smaller over-the-counter market <.HASTCI> has 87 companies listed with a total capitalisation of $4.8 billion.
Foreign investors have raised their investment in Vietnamese securities to $5 billion as of early last month, from $3 billion to $4 billion in March, industry reports said.
The communist-run country caps foreign ownership in listed companies at 49 percent and 30 percent in listed banks.
Vietnam's central bank has forecast foreign indirect investment would rise to $5.5 billion by the end of this year.
Source: Reuters
Friday, July 27, 2007
New matching scheme: everything ready, worries exist
Securities companies and the HCM City Securities Trading Centre (HSTC) have announced they are ready for the real-time order matching scheme, but still have worries.
After three delays, the real-time order matching scheme will officially be applied as of July 30, 2007, and no further delays will occur.
According to HSTC, the rehearsal was very satisfactory, while 48 securities companies said they were ready for the application of the new scheme.
Le Hai Tra, Deputy Director HSTC, said that everything proved to be okay and the trading centre had got permission from the State Securities Commission (SSC) to apply the real-time order matching scheme.
However, the securities companies which have announced their readiness said that worries existed and they could not ensure that no troubles would occur.
The director of a securities company said that the biggest problem was that there would be a break between the order-matching turns, while transaction staffs had to immediately announce order matching results to investors so that they could consider placing other orders.
Previously, transaction staffs of securities companies had half an hour between order-matching turns (there were three order matching turns every trading session) to inform investors about the results. Meanwhile, with the new scheme, the staffs will have several minutes only to do that.
HSTC has helped securities companies to install software that allows investors to immediately see the results transmitted from HSTC. The software is believed will help provide information for investors; however, according to the director, troubles may still occur if the transmission of information has problems.
Additionally, though the operations at trading centres have been automated, many works still need to be done manually. Therefore, securities companies will have to have more staffs in charge of answering investors directly during transactions.
Nguyen Anh Tuan, Deputy Director General of Bien Viet Securities Company (VSSC), said that his biggest worry was difficulty in transmitting information to investors.
Most securities companies now provide information to investors through two channels: Internet and SMS messages.
Mr Tra from HSTC said that HSTC would reconsider the membership status of securities companies which could not apply the real-time order matching scheme well.
He also said that HSTC planned to set up strict requirements on securities companies which would certainly be higher than the currently applied requirements, especially regarding technical facilities.
Mr Tra said that when HSTC begins to operate as stock exchange, listing companies must have the chartered capital of at least VND80bil ($5mil); therefore, it would be reasonable to ask securities companies to upgrade their facilities and skills. However, Mr Tra said that the companies would be given more time to get adapted to the new requirements and circumstances.
Source: VNE
After three delays, the real-time order matching scheme will officially be applied as of July 30, 2007, and no further delays will occur.
According to HSTC, the rehearsal was very satisfactory, while 48 securities companies said they were ready for the application of the new scheme.
Le Hai Tra, Deputy Director HSTC, said that everything proved to be okay and the trading centre had got permission from the State Securities Commission (SSC) to apply the real-time order matching scheme.
However, the securities companies which have announced their readiness said that worries existed and they could not ensure that no troubles would occur.
The director of a securities company said that the biggest problem was that there would be a break between the order-matching turns, while transaction staffs had to immediately announce order matching results to investors so that they could consider placing other orders.
Previously, transaction staffs of securities companies had half an hour between order-matching turns (there were three order matching turns every trading session) to inform investors about the results. Meanwhile, with the new scheme, the staffs will have several minutes only to do that.
HSTC has helped securities companies to install software that allows investors to immediately see the results transmitted from HSTC. The software is believed will help provide information for investors; however, according to the director, troubles may still occur if the transmission of information has problems.
Additionally, though the operations at trading centres have been automated, many works still need to be done manually. Therefore, securities companies will have to have more staffs in charge of answering investors directly during transactions.
Nguyen Anh Tuan, Deputy Director General of Bien Viet Securities Company (VSSC), said that his biggest worry was difficulty in transmitting information to investors.
Most securities companies now provide information to investors through two channels: Internet and SMS messages.
Mr Tra from HSTC said that HSTC would reconsider the membership status of securities companies which could not apply the real-time order matching scheme well.
He also said that HSTC planned to set up strict requirements on securities companies which would certainly be higher than the currently applied requirements, especially regarding technical facilities.
Mr Tra said that when HSTC begins to operate as stock exchange, listing companies must have the chartered capital of at least VND80bil ($5mil); therefore, it would be reasonable to ask securities companies to upgrade their facilities and skills. However, Mr Tra said that the companies would be given more time to get adapted to the new requirements and circumstances.
Source: VNE
The biggest problems of the Vietnamese stock market
Vu Bang, Chairman of the State Securities Commission (SSC), when reviewing the 7 years of the stock market, said that the biggest success in the last seven years was that the market had been developing on the right track with no crises, serving as the important capital channel for the national economy.
What have been the shortcomings of the stock market in its seven years of development?
First, the investment structure of the market has been unbalanced: the institutional investment proportion has been low.
Second, supply and demand have been unbalanced. Sometimes demand is too big while supply is too low.
Third, material facilities have not been able to keep up with development.
Moreover, there have been problems in the policies on the stock market’s management.
What will SSC do to settle the supply and demand imbalance?
There will be two big sources of supply of commodities from now to the year’s end, share auctions and offerings by public companies. As the State Securities Commission has calculated, the volume of shares to be offered is big. It is a right policy to bring more good commodities to the market; however, it is still necessary to consider the conditions of the market.
The equitisation process should be pushed up; however, it is necessary to draw up suitable plans for the IPOs of big corporations. SSC has issued a document giving suggestions related to the timing of IPOs. SSC plans to submit to the Ministry of Finance a draft mechanism, which would allow companies to delay their share issuance plans, though they have been licenced.
I think it is necessary to keep close watch over demand on the market. For example, there should not be policies that tighten the flow of foreign portfolio investment into Vietnam at this moment.
Let’s talk about management and supervision capability. There have been many violations related to information exposure. What do we do to deal with the problem?
I have to admit that supervision and inspection capability is not good. It is partially because of the lack of staffs and the qualification of the staffs. Besides, penalties have proved to be not heavy enough to deter violators.
There are three things the committee needs to do to heighten supervision capability. 1. Setting up an independent supervision committee, which will supervise the operation of the market. 2. Focusing on training supervisors. The investigation requires qualified staffs. 3. Investing in a supervision system (which should be foreign-made).
Source: VNE
What have been the shortcomings of the stock market in its seven years of development?
First, the investment structure of the market has been unbalanced: the institutional investment proportion has been low.
Second, supply and demand have been unbalanced. Sometimes demand is too big while supply is too low.
Third, material facilities have not been able to keep up with development.
Moreover, there have been problems in the policies on the stock market’s management.
What will SSC do to settle the supply and demand imbalance?
There will be two big sources of supply of commodities from now to the year’s end, share auctions and offerings by public companies. As the State Securities Commission has calculated, the volume of shares to be offered is big. It is a right policy to bring more good commodities to the market; however, it is still necessary to consider the conditions of the market.
The equitisation process should be pushed up; however, it is necessary to draw up suitable plans for the IPOs of big corporations. SSC has issued a document giving suggestions related to the timing of IPOs. SSC plans to submit to the Ministry of Finance a draft mechanism, which would allow companies to delay their share issuance plans, though they have been licenced.
I think it is necessary to keep close watch over demand on the market. For example, there should not be policies that tighten the flow of foreign portfolio investment into Vietnam at this moment.
Let’s talk about management and supervision capability. There have been many violations related to information exposure. What do we do to deal with the problem?
I have to admit that supervision and inspection capability is not good. It is partially because of the lack of staffs and the qualification of the staffs. Besides, penalties have proved to be not heavy enough to deter violators.
There are three things the committee needs to do to heighten supervision capability. 1. Setting up an independent supervision committee, which will supervise the operation of the market. 2. Focusing on training supervisors. The investigation requires qualified staffs. 3. Investing in a supervision system (which should be foreign-made).
Source: VNE
HOSE - Ho Chi Minh City’s new stock market
The Ho Chi Minh City Securities Trading Center – Asia’s hottest stock exchange last year – is scheduled to transform itself into the HCMC Stock Exchange (HOSE) on August 8.
Following a decision approved by Vietnamese Prime Minister Nguyen Tan Dung in May, HOSE will organize transactions for eligible listed companies and have the power to issue listing licenses.
The limited liability state company will have a chartered capital of VND1 trillion (US$63 million) and will perform many of the duties currently carried out by the State Securities Commission (SSC).
Companies expecting to trade shares on the stock market will have to submit applications to the HOSE instead of the SSC.
HOSE will be Vietnam’s most advanced stock market platform yet and will list only big corporations. The company will go public by 2010.
A clear and detailed agenda will be mapped out to create a modern stock market capable of linking with other regional markets.
The HCMC market is home to 109 listed stocks, including two funds and more than 40 brokerage firms.
Stock market capitalization is forecast to hit US$30-40 billion by 2010, accounting for between 30 and 40 percent of the country’s gross domestic product (GDP), according to SSC.
Source: Thanh Nien
Following a decision approved by Vietnamese Prime Minister Nguyen Tan Dung in May, HOSE will organize transactions for eligible listed companies and have the power to issue listing licenses.
The limited liability state company will have a chartered capital of VND1 trillion (US$63 million) and will perform many of the duties currently carried out by the State Securities Commission (SSC).
Companies expecting to trade shares on the stock market will have to submit applications to the HOSE instead of the SSC.
HOSE will be Vietnam’s most advanced stock market platform yet and will list only big corporations. The company will go public by 2010.
A clear and detailed agenda will be mapped out to create a modern stock market capable of linking with other regional markets.
The HCMC market is home to 109 listed stocks, including two funds and more than 40 brokerage firms.
Stock market capitalization is forecast to hit US$30-40 billion by 2010, accounting for between 30 and 40 percent of the country’s gross domestic product (GDP), according to SSC.
Source: Thanh Nien
Thursday, July 19, 2007
Stock market investors fined for rigging
The State Securities Commission (SSC) found Huynh Thanh Minh and Bui Quang Thanh, both individual investors on the Ho Chi Minh City market, guilty of “illegal cooperation” in securities trading.
According to the commission, the two worked together to create fake demand and rig the prices of VietFund’s mutual fund VFMVF1.
The SSC slapped Minh with a VND60 million penalty, VND30 million of which was for creating fake demand and rigging stock prices, while the rest was for soliciting other investors to by and sell.
Thanh was hit with a VND100 million fine, split evenly for the same two illegalities.
But the market regulator did not disclose whom they might have been in collusion with, nor was any information released on the difference of the fining rate.
The two men are the second set of investors to be fined for stock rigging.
The fine amount is the lowest possible for such an offense, with the maximum being VND50 million.
Earlier this month SSC also imposed a VND30 million ($1,589) fine on Nguyen Diem Khanh, a director of the Ho Chi Minh City-based LiLi Joint Stock Company for a similar violation.
Further details have yet to be released on that case.
The SSC’s actions had hit protests from investors who are indignant that the SSC took nearly one month to carry out the fines after making the decision on May 30.
Investors, both individuals and institutions, were unhappy with the market regulator’s handling of the situation.
Many investors see providing full and immediate information on each case immediately as necessary to protecting investors’ benefits.
They also urged the SSC to levy more drastic penalties on offenders in such cases.
The Vietnamese securities watchdog announced Wednesday it would fine two investors a total of VND160 million (US$9,925) for manipulating stocks.
Source: Thanh Nien
According to the commission, the two worked together to create fake demand and rig the prices of VietFund’s mutual fund VFMVF1.
The SSC slapped Minh with a VND60 million penalty, VND30 million of which was for creating fake demand and rigging stock prices, while the rest was for soliciting other investors to by and sell.
Thanh was hit with a VND100 million fine, split evenly for the same two illegalities.
But the market regulator did not disclose whom they might have been in collusion with, nor was any information released on the difference of the fining rate.
The two men are the second set of investors to be fined for stock rigging.
The fine amount is the lowest possible for such an offense, with the maximum being VND50 million.
Earlier this month SSC also imposed a VND30 million ($1,589) fine on Nguyen Diem Khanh, a director of the Ho Chi Minh City-based LiLi Joint Stock Company for a similar violation.
Further details have yet to be released on that case.
The SSC’s actions had hit protests from investors who are indignant that the SSC took nearly one month to carry out the fines after making the decision on May 30.
Investors, both individuals and institutions, were unhappy with the market regulator’s handling of the situation.
Many investors see providing full and immediate information on each case immediately as necessary to protecting investors’ benefits.
They also urged the SSC to levy more drastic penalties on offenders in such cases.
The Vietnamese securities watchdog announced Wednesday it would fine two investors a total of VND160 million (US$9,925) for manipulating stocks.
Source: Thanh Nien
Wednesday, July 18, 2007
Vietnam tech giant gets stockbroking license
Vietnam's top information technology services firm FPT Corp. has received the regulator’s nod to set up a securities brokerage as part of its drive to diversify into financial services. The State Securities Commission issued a license last week for the establishment of FPT Securities with a chartered capital of VND200 billion (US$12 million).
The brokerage will open in mid-August, offering stock brokerage, underwriting, and financial and investment consulting and stock depository.
The Ho Chi Minh City-listed FTP has been seeking to diversify away from its core businesses of software production, mobile phone distribution, and Internet services in an effort to get a slice of Vietnam's rapidly-growing financial services market.
The tech group has already won the license to FPT Fund Management Co, which is expected to be launched in the near future and it is also seeking central bank permission to open a commercial bank.
It is set to list on foreign stock exchanges next year with a particular interest in Singapore market to tap international capital sources.
Texas Pacific Group, a private-equity fund, and Intel Capital, a unit of chipmaker Intel hold a 10 percent stake worth $36.5 million in FPT.
Shares in FPT stayed unchanged at VND290,000 Tuesday, valuing the Hanoi-based company at VND135 billion.
Source: Thanh Nien
The brokerage will open in mid-August, offering stock brokerage, underwriting, and financial and investment consulting and stock depository.
The Ho Chi Minh City-listed FTP has been seeking to diversify away from its core businesses of software production, mobile phone distribution, and Internet services in an effort to get a slice of Vietnam's rapidly-growing financial services market.
The tech group has already won the license to FPT Fund Management Co, which is expected to be launched in the near future and it is also seeking central bank permission to open a commercial bank.
It is set to list on foreign stock exchanges next year with a particular interest in Singapore market to tap international capital sources.
Texas Pacific Group, a private-equity fund, and Intel Capital, a unit of chipmaker Intel hold a 10 percent stake worth $36.5 million in FPT.
Shares in FPT stayed unchanged at VND290,000 Tuesday, valuing the Hanoi-based company at VND135 billion.
Source: Thanh Nien
Tuesday, July 17, 2007
Commission draws flack for being soft on market violators
There is growing public concern that punishments for violating securities laws are too lax, which only encourages more people to break the rules.
Though the State Securities Commission (SSC) has indicated all violators would face harsh repercussions, the number and types of regulatory infringements continues to rise.
Since the beginning of the year, the HCM City Securities Trading Centre (HoSTC) has issued warnings to securities companies and suspended brokers for mismanaging orders. The companies include Hai Phong Securities, Au Lac Securities, Gia Anh Securities, Thang Long Securities and HCM City Securities.
The SSC recently ordered six brokerages, including Pacific Securities and VPBank Securities, to close employees’ secondary accounts. Regulations state that brokers are allowed to open only one account with their company of employment.
It is not only small securities firms that have violated regulations.
Indochina Capital was fined VND10 million for trading VNM shares internally without reporting the activity to authorities, while HoSTC officials have warned Citigroup Global for not reporting its acquisition of 5.48 per cent of NKD shares.
Sai Gon Securities Inc had to pay a VND10 million fine after raising its charter capital three times last year from VND52 billion to VND500 billion without reporting to the commission in time.
There were also cases with senior executives at listed companies silently trading shares without properly notifying authorities.
In mid-June, Tran Le Viet Hung, a board member of Bibica JSC (BBC), and Luu Tan Khoa, supervisor of Ry Ninh II Hydropower JSC (RHC), traded BBC and RHC shares on the HCM City exchange, but did not tell authorities and executives at their respective companies.
The HoSTC did not punish either of the executives, but issued a warning to properly comply with regulations regarding public disclosure in future.
Bui Ngoc Tuoc, a freelance securities analyst, says most securities violations are intentional and were discovered only after the SSC and HoSTC carried out investigations.
The two executives who financially gained from silently swapping shares, for example, knew the regulations clearly but were not afraid since they knew punishment would be light, says Tuoc.
On June 28, the SSC announced it had imposed a VND30 million fine on Nguyen Diem Phuong Khanh, an investor in HCM City, after she colluded with her brokerage to create artificial demand for a stock, which pushed share prices higher.
"This was good news as it was the first time an attempt to distort prices was discovered," says HoSTC Deputy Director Le Hai Tra. "The punishment was rather light though, but we cannot act beyond the scope of regulations."
Some brokerages are upset with how authorities have handled cases since soft punishments only hurt securities companies that comply with regulations.
SSC Director Vu Bang says the commission has submitted a plan to the Government to establish a regulatory enforcement board, which will co-operate with securities trading centres on market oversight.
The board’s two main functions will be to search for market manipulating practices and oversee the bourses’ information systems.
Source: VNS
Though the State Securities Commission (SSC) has indicated all violators would face harsh repercussions, the number and types of regulatory infringements continues to rise.
Since the beginning of the year, the HCM City Securities Trading Centre (HoSTC) has issued warnings to securities companies and suspended brokers for mismanaging orders. The companies include Hai Phong Securities, Au Lac Securities, Gia Anh Securities, Thang Long Securities and HCM City Securities.
The SSC recently ordered six brokerages, including Pacific Securities and VPBank Securities, to close employees’ secondary accounts. Regulations state that brokers are allowed to open only one account with their company of employment.
It is not only small securities firms that have violated regulations.
Indochina Capital was fined VND10 million for trading VNM shares internally without reporting the activity to authorities, while HoSTC officials have warned Citigroup Global for not reporting its acquisition of 5.48 per cent of NKD shares.
Sai Gon Securities Inc had to pay a VND10 million fine after raising its charter capital three times last year from VND52 billion to VND500 billion without reporting to the commission in time.
There were also cases with senior executives at listed companies silently trading shares without properly notifying authorities.
In mid-June, Tran Le Viet Hung, a board member of Bibica JSC (BBC), and Luu Tan Khoa, supervisor of Ry Ninh II Hydropower JSC (RHC), traded BBC and RHC shares on the HCM City exchange, but did not tell authorities and executives at their respective companies.
The HoSTC did not punish either of the executives, but issued a warning to properly comply with regulations regarding public disclosure in future.
Bui Ngoc Tuoc, a freelance securities analyst, says most securities violations are intentional and were discovered only after the SSC and HoSTC carried out investigations.
The two executives who financially gained from silently swapping shares, for example, knew the regulations clearly but were not afraid since they knew punishment would be light, says Tuoc.
On June 28, the SSC announced it had imposed a VND30 million fine on Nguyen Diem Phuong Khanh, an investor in HCM City, after she colluded with her brokerage to create artificial demand for a stock, which pushed share prices higher.
"This was good news as it was the first time an attempt to distort prices was discovered," says HoSTC Deputy Director Le Hai Tra. "The punishment was rather light though, but we cannot act beyond the scope of regulations."
Some brokerages are upset with how authorities have handled cases since soft punishments only hurt securities companies that comply with regulations.
SSC Director Vu Bang says the commission has submitted a plan to the Government to establish a regulatory enforcement board, which will co-operate with securities trading centres on market oversight.
The board’s two main functions will be to search for market manipulating practices and oversee the bourses’ information systems.
Source: VNS
Monday, July 16, 2007
How to control manipulation of the securities market?
The Securities Market Supervision Board aims to monitor all market fluctuations to keep the securities market purring along while controlling acts of manipulation.
The State Securities Commission (SSC) has submitted the Government a project to establish a Securities Market Supervision Board, which will closely work with the securities trading centres to set up a uniform continuous supervision system.
Supervisory results from the board will provide an important foundation for inspectors to handle violations of the securities market. SCC Vice Chairman Nguyen Doan Hung talks about this issue.
How have the securities market’s activities been supervised?
The supervision process occurs on three different levels: Firstly supervising areas related to the SSC, secondly supervising the market’s operations at the stock exchanges and securities trading centres and thirdly, supervising securities companies and funds. The SSC currently focuses on monitoring securities companies, fund management companies and organisations licensed by the SCC.
The SSC is managing the issuance of securities by public companies, which has been approved by the SSC.
What is the most important task of the Securities Market Supervision Board and how will it impact on the securities market?
The board will monitor all fluctuations on the market to ensure its table operation. However, there is a difference between inspection and supervision. Inspection is conducted by a functional board. For instance, securities and fund management companies are under the supervision of the business management board. When signs of violation are detected among these companies, they will be reported to the securities inspection board to consider and deal with under punitive laws. However, supervision and analysis of transactions on the securities market in Vietnam remains weak while many other countries can use a standard information and technology (IT) supervision system to find out violations of transaction regulations. We are trying our best to build a modern IT system to raise the SSC’s supervisory efficiency.
How about the exercise of supervision at the stock exchanges and securities trading centres in Hanoi and Ho Chi Minh City?
Securities companies are members of the stock exchanges and securities trading centres. The stock exchanges and securities centres have specific regulations to supervise transactions made by their members. If any unusual transaction is discovered, all members of securities companies will be notified. If it is a serious violation, the case will be moved to the SSC for consideration. In addition, the securities custodies also supervise securities trading activities.
People say that the SSC has not controlled the influx of foreign investment in the securities market. What is your idea opinion?
Regarding the management of foreign currencies, the Government has assigned the State Bank of Vietnam (SBV) and the SBV’s Department of Foreign Currency Management in particularly to supervise the flows of direct and indirect foreign investment into Vietnam and out of the country.
The SBV has strict supervision regulations. For example, investors must open an account at the SBV so that the bank can monitor the account and regulate the country’s monetary policy and State budget balance.
For the SSC, the commission is interested in foreign investment funds, as they can be set up quickly with a large capitalisation. Under the law on securities and new regulations, the SSC will be in charge of supervising the funds. The regulation stipulates that foreign investment funds must report to the SSC on the establishment of the fund, the origin, the capital source of the fund and investment plans in Vietnam. We hope that the law and new regulations will help monitor the effectiveness of direct and indirect foreign investments in Vietnam.
source: VNE
The State Securities Commission (SSC) has submitted the Government a project to establish a Securities Market Supervision Board, which will closely work with the securities trading centres to set up a uniform continuous supervision system.
Supervisory results from the board will provide an important foundation for inspectors to handle violations of the securities market. SCC Vice Chairman Nguyen Doan Hung talks about this issue.
How have the securities market’s activities been supervised?
The supervision process occurs on three different levels: Firstly supervising areas related to the SSC, secondly supervising the market’s operations at the stock exchanges and securities trading centres and thirdly, supervising securities companies and funds. The SSC currently focuses on monitoring securities companies, fund management companies and organisations licensed by the SCC.
The SSC is managing the issuance of securities by public companies, which has been approved by the SSC.
What is the most important task of the Securities Market Supervision Board and how will it impact on the securities market?
The board will monitor all fluctuations on the market to ensure its table operation. However, there is a difference between inspection and supervision. Inspection is conducted by a functional board. For instance, securities and fund management companies are under the supervision of the business management board. When signs of violation are detected among these companies, they will be reported to the securities inspection board to consider and deal with under punitive laws. However, supervision and analysis of transactions on the securities market in Vietnam remains weak while many other countries can use a standard information and technology (IT) supervision system to find out violations of transaction regulations. We are trying our best to build a modern IT system to raise the SSC’s supervisory efficiency.
How about the exercise of supervision at the stock exchanges and securities trading centres in Hanoi and Ho Chi Minh City?
Securities companies are members of the stock exchanges and securities trading centres. The stock exchanges and securities centres have specific regulations to supervise transactions made by their members. If any unusual transaction is discovered, all members of securities companies will be notified. If it is a serious violation, the case will be moved to the SSC for consideration. In addition, the securities custodies also supervise securities trading activities.
People say that the SSC has not controlled the influx of foreign investment in the securities market. What is your idea opinion?
Regarding the management of foreign currencies, the Government has assigned the State Bank of Vietnam (SBV) and the SBV’s Department of Foreign Currency Management in particularly to supervise the flows of direct and indirect foreign investment into Vietnam and out of the country.
The SBV has strict supervision regulations. For example, investors must open an account at the SBV so that the bank can monitor the account and regulate the country’s monetary policy and State budget balance.
For the SSC, the commission is interested in foreign investment funds, as they can be set up quickly with a large capitalisation. Under the law on securities and new regulations, the SSC will be in charge of supervising the funds. The regulation stipulates that foreign investment funds must report to the SSC on the establishment of the fund, the origin, the capital source of the fund and investment plans in Vietnam. We hope that the law and new regulations will help monitor the effectiveness of direct and indirect foreign investments in Vietnam.
source: VNE
Friday, July 13, 2007
Vietnam to keep watch over foreign capital on stock market
Nguyen Doan Hung, Deputy Chairman of the State Securities Commission (SSC), talks more about the project on setting up the market monitoring committee which SSC has submitted to the Government.
Under the project, the market monitoring committee will cooperate closely with securities trading centres to form a constant supervising system which can inspect activities on the stock market.
What is the most important task of the market monitoring committee?
It, as a watchdog, keeps watch over the market’s performance, gives analysis and thus ensures the stability of the market. You should differentiate between ‘inspection’ and ‘monitoring’. The monitoring work will be carried out by functional divisions. For example, the Division for Business Management will supervise securities companies and fund management companies, while the Division for Securities Issuance Management will supervise public companies. If signs of law violations are found, the cases will be transferred to inspectors for further investigation and resolution. Inspectors will decide how heavily to punish violators.
I can say that Vietnam is still weak in monitoring and analysing transactions on the market. In other countries, there exists a good monitoring system that allows for the reconstruction of all transactions in the past to find signs of insider trading or illegal activities. That explains why we are striving to set up the monitoring committee, as well as build a modern information base in order to heighten the effectiveness of the committee’s monitoring system.
How would you explain the fact that SSC did not do anything even when a lot of share items continuously increased to the ceiling price levels in five consecutive trading sessions?
A good monitoring system will automatically interrupt and halt transactions when it discovers any items that have prices increasing continuously in five consecutive trading sessions. Such a system is being installed in Vietnam, and it is expected that by 2008 we will have a fully worked out system. Our current system is facing some problems in information technology.
As you may know, some experts have criticised SSC for failing to control the foreign capital flow into Vietnam’s stock market. What would you say about that?
Currently, the work of forex management is being carried out by the State Bank of Vietnam, which is responsible for controlling the inflow and outflow of foreign direct and portfolio investment. The central bank has set specific regulations to take control over the foreign capital flow.
For example, foreign investors must open specific accounts, which must be registered at the central bank, to serve their transactions in Vietnam.
In fact, SSC is also very interested in foreign investment funds, which have injected big amounts of money in Vietnam’s stocks. According to the Securities Law and the regulation on the market monitoring committee to be promulgated, SSC will also keep watch over the foreign capital flow.
Under the draft regulation, foreign investment funds will have to register at the committee and provide information about the sources of fund’s capital, origin and investment plans in Vietnam.
Source: VNE
Under the project, the market monitoring committee will cooperate closely with securities trading centres to form a constant supervising system which can inspect activities on the stock market.
What is the most important task of the market monitoring committee?
It, as a watchdog, keeps watch over the market’s performance, gives analysis and thus ensures the stability of the market. You should differentiate between ‘inspection’ and ‘monitoring’. The monitoring work will be carried out by functional divisions. For example, the Division for Business Management will supervise securities companies and fund management companies, while the Division for Securities Issuance Management will supervise public companies. If signs of law violations are found, the cases will be transferred to inspectors for further investigation and resolution. Inspectors will decide how heavily to punish violators.
I can say that Vietnam is still weak in monitoring and analysing transactions on the market. In other countries, there exists a good monitoring system that allows for the reconstruction of all transactions in the past to find signs of insider trading or illegal activities. That explains why we are striving to set up the monitoring committee, as well as build a modern information base in order to heighten the effectiveness of the committee’s monitoring system.
How would you explain the fact that SSC did not do anything even when a lot of share items continuously increased to the ceiling price levels in five consecutive trading sessions?
A good monitoring system will automatically interrupt and halt transactions when it discovers any items that have prices increasing continuously in five consecutive trading sessions. Such a system is being installed in Vietnam, and it is expected that by 2008 we will have a fully worked out system. Our current system is facing some problems in information technology.
As you may know, some experts have criticised SSC for failing to control the foreign capital flow into Vietnam’s stock market. What would you say about that?
Currently, the work of forex management is being carried out by the State Bank of Vietnam, which is responsible for controlling the inflow and outflow of foreign direct and portfolio investment. The central bank has set specific regulations to take control over the foreign capital flow.
For example, foreign investors must open specific accounts, which must be registered at the central bank, to serve their transactions in Vietnam.
In fact, SSC is also very interested in foreign investment funds, which have injected big amounts of money in Vietnam’s stocks. According to the Securities Law and the regulation on the market monitoring committee to be promulgated, SSC will also keep watch over the foreign capital flow.
Under the draft regulation, foreign investment funds will have to register at the committee and provide information about the sources of fund’s capital, origin and investment plans in Vietnam.
Source: VNE
Friday, July 06, 2007
Setting up securities companies: opportunity over
There are now 55 operational securities companies, and some 50 others are waiting for operation licences from the State Securities Commission (SSC). However, experts have said that the golden time to establish securities companies is passed.
The director of a newly set up securities company said that most of the companies set up late last year were still having difficulty making profit. The right time for setting up securities companies was five or six years ago, when the stock market began operating. The companies established at that ‘golden time’ have been able to make fat profit.
Of the five sectors securities companies are allowed to operate in, brokerage services and self-business (companies make securities investment themselves) can bring the biggest profit. The companies set up in the very first period of the stock market, including SSI, BSC, BVSC, VCBS and ACBS, can attract many clients thanks to their 5-6 years of experience.
As for self-business, big money fell into the hands of these securities companies when share prices increased many fold over the prices at which the companies bought shares.
Meanwhile, opportunities to make profit from securities investment deals have not come for newly set up companies. Share prices were very high at the time the companies were set up but have been falling since March, leaving no money for these companies, some of which have even incurred losses from their investment deals.
The director of a securities company said that in the long term, the stock market would further develop, but that history would not repeat itself: share prices will not increase as dramatically as last year, and securities companies will not have the opportunity to get super profit.
Though many securities companies will be set up in the time to come, experts still believe that there will not be an excess of securities companies as people have said, as small companies that cannot meet the demands of clients will be forced to close.
In fact, room is always available for companies which can provide high-quality services. Recently, securities companies have been overloaded due to the sharply increasing number of clients. Many new clients have been refused service by big companies, prompting them to approach newly set companies.
Source: VNE
The director of a newly set up securities company said that most of the companies set up late last year were still having difficulty making profit. The right time for setting up securities companies was five or six years ago, when the stock market began operating. The companies established at that ‘golden time’ have been able to make fat profit.
Of the five sectors securities companies are allowed to operate in, brokerage services and self-business (companies make securities investment themselves) can bring the biggest profit. The companies set up in the very first period of the stock market, including SSI, BSC, BVSC, VCBS and ACBS, can attract many clients thanks to their 5-6 years of experience.
As for self-business, big money fell into the hands of these securities companies when share prices increased many fold over the prices at which the companies bought shares.
Meanwhile, opportunities to make profit from securities investment deals have not come for newly set up companies. Share prices were very high at the time the companies were set up but have been falling since March, leaving no money for these companies, some of which have even incurred losses from their investment deals.
The director of a securities company said that in the long term, the stock market would further develop, but that history would not repeat itself: share prices will not increase as dramatically as last year, and securities companies will not have the opportunity to get super profit.
Though many securities companies will be set up in the time to come, experts still believe that there will not be an excess of securities companies as people have said, as small companies that cannot meet the demands of clients will be forced to close.
In fact, room is always available for companies which can provide high-quality services. Recently, securities companies have been overloaded due to the sharply increasing number of clients. Many new clients have been refused service by big companies, prompting them to approach newly set companies.
Source: VNE
Wednesday, July 04, 2007
Investor fined $1,859 for stock rigging
The Vietnamese securities watchdog has slapped a fine of VND30 million (US$1,859) on an investor for manipulating stock prices.
The State Securities Commission (SSC) found Nguyen Diem Khanh, a director of of the Ho Chi Minh City-based LiLi Joint Stock Company which specializes in financial investment, guilty of “illegal cooperation in securities trading” to create fake demand and rig stock prices.
But it did not disclose any further information like whom she was in collusion with and which stock prices they manipulated.
This has raised protests from investors who are also indignant that the SSC took nearly one month to make the charges and fine public after making the decision on May 30.
Khanh is the first investor to be fined for stock rigging.
The fine amount is the lowest provided for under the law, with the maximum being VND50 million.
An employee of a Hanoi-based fund said even the maximum penalty was not enough deterrent to stop rigging. He added that the most important issue was for the watchdog to come clean on the matter and not give the appearance of hiding something.
Source: Thanh Nien
The State Securities Commission (SSC) found Nguyen Diem Khanh, a director of of the Ho Chi Minh City-based LiLi Joint Stock Company which specializes in financial investment, guilty of “illegal cooperation in securities trading” to create fake demand and rig stock prices.
But it did not disclose any further information like whom she was in collusion with and which stock prices they manipulated.
This has raised protests from investors who are also indignant that the SSC took nearly one month to make the charges and fine public after making the decision on May 30.
Khanh is the first investor to be fined for stock rigging.
The fine amount is the lowest provided for under the law, with the maximum being VND50 million.
An employee of a Hanoi-based fund said even the maximum penalty was not enough deterrent to stop rigging. He added that the most important issue was for the watchdog to come clean on the matter and not give the appearance of hiding something.
Source: Thanh Nien
Sunday, June 24, 2007
Disclosure rules to dissuade stock plots
The State Securities Commission ordered the nation's stock exchanges on June 21 to provide more detailed information related to unusual transactions, in a move targeted at avoiding market manipulation.
In the wake of the recent price volatility of several shares, the commission ordered the HCM City and Ha Noi Securities Trading Centres and the Securities Depository Centre to provide greater transaction data to the commission.
The commission noted that shares of the Binh Dinh Mining Co (coded BMC) had surged recently and unusual trading activity was under investigation. BMC shares remained unchanged on June 22 at 569,000 VND.
The commission also ordered the securities trading centres to provide investors with timely information on ceiling increases or floor decreases over the five consecutive sessions to avoid market manipulation.
Public disclosure would be required to include preliminary data analysis to help investors identify unusual transactions and avoid high-risk shares.
Source: VNA
In the wake of the recent price volatility of several shares, the commission ordered the HCM City and Ha Noi Securities Trading Centres and the Securities Depository Centre to provide greater transaction data to the commission.
The commission noted that shares of the Binh Dinh Mining Co (coded BMC) had surged recently and unusual trading activity was under investigation. BMC shares remained unchanged on June 22 at 569,000 VND.
The commission also ordered the securities trading centres to provide investors with timely information on ceiling increases or floor decreases over the five consecutive sessions to avoid market manipulation.
Public disclosure would be required to include preliminary data analysis to help investors identify unusual transactions and avoid high-risk shares.
Source: VNA
Wednesday, June 20, 2007
SDC not responsible for providing information
Responding to the dispatch from the Vietnam Association of Finance Investors (VAFI), which asked the Securities Depository Centre (SDC) to provide necessary information, the State Securities Commission said that SDC did not have this responsibility.
In early June 2007, VAFI sent a document to SSC, asking for the establishment of a suitable scheme on information providing and equitisation of SDC to improve the operation of the centre.
VAFI asked SDC to provide information periodically about the numbers of domestic and foreign investors, and a list of domestic and foreign institutions participating in the stock market. It also proposed the issuance of a monthly list of foreign institutions present in Vietnam (foreign investment funds and fund management companies), and a list of foreign institutions not present in Vietnam but participating in Vietnam’s market.
However, SSC stated that the kind of information VAFI asked to be provided is not within the control of SDC.
Regarding the complaints by VAFI that it took too much time to deposit securities at SDC, SSC said that there were many reasons for the tardiness, and SDC should not be seen as the only faulty body. Tardiness will occur when depository members do not submit the list of investors to SDC on time.
SSC said that the management authority was trying to simplify depository procedures. Investors now can bring the books certifying stock ownership to depository members to deposit securities. The members will then send the list of securities owners to SDC. Investors now do not have to get confirmation from securities issuance institutions any more.
In related news, the recent meeting between SSC and securities companies still did not see a decision on the exact day for applying the real-time order matching scheme. The biggest challenge now is the low readiness of securities companies for the application due to technical problems.
Source: VNE
In early June 2007, VAFI sent a document to SSC, asking for the establishment of a suitable scheme on information providing and equitisation of SDC to improve the operation of the centre.
VAFI asked SDC to provide information periodically about the numbers of domestic and foreign investors, and a list of domestic and foreign institutions participating in the stock market. It also proposed the issuance of a monthly list of foreign institutions present in Vietnam (foreign investment funds and fund management companies), and a list of foreign institutions not present in Vietnam but participating in Vietnam’s market.
However, SSC stated that the kind of information VAFI asked to be provided is not within the control of SDC.
Regarding the complaints by VAFI that it took too much time to deposit securities at SDC, SSC said that there were many reasons for the tardiness, and SDC should not be seen as the only faulty body. Tardiness will occur when depository members do not submit the list of investors to SDC on time.
SSC said that the management authority was trying to simplify depository procedures. Investors now can bring the books certifying stock ownership to depository members to deposit securities. The members will then send the list of securities owners to SDC. Investors now do not have to get confirmation from securities issuance institutions any more.
In related news, the recent meeting between SSC and securities companies still did not see a decision on the exact day for applying the real-time order matching scheme. The biggest challenge now is the low readiness of securities companies for the application due to technical problems.
Source: VNE
Monday, June 18, 2007
June 11-15: stock market recovered slightly in latest transactions
Though there were more trading sessions that saw the VN Index increases than the sessions that saw the VN Index decreases, the market still fell down slightly in the last week. This was the third consecutive week that saw the VN Index down.
The stock market last week bore the influence by the State Bank of Vietnam’s (SBV) decisions on limiting the loans funding securities investment deals, and raising the compulsory reserve ratio. Experts have predicted that with the new decisions, a big amount of money will be withdrawn from the market.
Responding to the SBV’s moves, the prices of shares on the stock market decreased slightly last week. The VN Index fell slightly to below the 1,050 point threshold. 60 share items saw the prices decrease, 39 items saw the prices increase, while other 8 items were stabilized in prices.
On June 11 transactions, VGP was the share item which saw the biggest decreases (- 4.96%), VFMVF1 fund certificate was down by 2.4% in prices to VND32,600/certificate, while PRUBF1 down by VND200 (1.5%) to VND13,100.
The trading sessions on June 12 witnessed the VN Index falling down to the deepest low in the last one month, 1,036.54 points.
The VN Index bounced back on June 13 after three consecutive sessions of falling down, while the downturn was still seen at the Hanoi Securities Trading Centre (HASTC).
What surprised investors most was that the share prices of BMC and TCT, which had been increasing sharply since the beginning of the year, fell down dramatically last week. BMC prices decreased by VND27,000/share to VND520,000, while TCT decreased by VND20,000 to VND386,000
Analysts said that the news that the management authorities would examine the unusual price increases of BMC and TCT have forced the prices down.
The VN Index rose slightly on June 14 after two trading sessions of staying at below 1,040 points and kept rising on June 15, closing at 1,048.19 points.
Analysts said that the VN Index slightly recovered because share prices have reduced by 11% already. Besides, investors remain optimistic about the stock market after hearing the news that Japanese investors open more accounts to make securities transactions in Vietnam. Experts have predicted that many foreign investment funds would enter Vietnam after Vietnamese President Nguyen Minh Triet’s visit to the US in order to strengthen the economic ties between the US and Vietnam.
The total trading value was VND3,042bil ($190,12mil) last week, or VND608bil ($38mil) a day. Some 29.4mil securities were traded in the last five trading sessions, or 5.88mil units a session.
Regulation on foreign securities investors control to be enacted
The State Securities Commission (SSC) is drafting the regulation on foreign investors control which is expected to be promulgated in June. SSC is also considering terminating the authorized investment in Vietnam’s stock market via individuals in Vietnam.
The news was given by Nguyen Thi Lien Hoa, Deputy Chairwoman of SSC at the workshop on portfolio investment encouragement and management held in Hanoi on June 15.
Mrs Hoa said under the new regulation, competent agencies will grant trading codes to foreign investors, and ask to give reports on foreign investors’ transactions. Foreign investors have to provide necessary information to the management authority when they come to make
investments in Vietnam.
From the fourth quarter of 2006 to the first quarter of 2007, the portfolio investment into the stock market has been increasing sharply, which has made difficulties for the management authority.
The appearance of many foreign investors, who have big capital and professional investment method, has helped the stock market become more bustling. However, the state management authority has discovered more and more violations committed by foreign investors, which mainly relate to the information exposure. Many investors were found as making reports slowly and providing inadequate information, making the management work more difficult.
Source: VNE
The stock market last week bore the influence by the State Bank of Vietnam’s (SBV) decisions on limiting the loans funding securities investment deals, and raising the compulsory reserve ratio. Experts have predicted that with the new decisions, a big amount of money will be withdrawn from the market.
Responding to the SBV’s moves, the prices of shares on the stock market decreased slightly last week. The VN Index fell slightly to below the 1,050 point threshold. 60 share items saw the prices decrease, 39 items saw the prices increase, while other 8 items were stabilized in prices.
On June 11 transactions, VGP was the share item which saw the biggest decreases (- 4.96%), VFMVF1 fund certificate was down by 2.4% in prices to VND32,600/certificate, while PRUBF1 down by VND200 (1.5%) to VND13,100.
The trading sessions on June 12 witnessed the VN Index falling down to the deepest low in the last one month, 1,036.54 points.
The VN Index bounced back on June 13 after three consecutive sessions of falling down, while the downturn was still seen at the Hanoi Securities Trading Centre (HASTC).
What surprised investors most was that the share prices of BMC and TCT, which had been increasing sharply since the beginning of the year, fell down dramatically last week. BMC prices decreased by VND27,000/share to VND520,000, while TCT decreased by VND20,000 to VND386,000
Analysts said that the news that the management authorities would examine the unusual price increases of BMC and TCT have forced the prices down.
The VN Index rose slightly on June 14 after two trading sessions of staying at below 1,040 points and kept rising on June 15, closing at 1,048.19 points.
Analysts said that the VN Index slightly recovered because share prices have reduced by 11% already. Besides, investors remain optimistic about the stock market after hearing the news that Japanese investors open more accounts to make securities transactions in Vietnam. Experts have predicted that many foreign investment funds would enter Vietnam after Vietnamese President Nguyen Minh Triet’s visit to the US in order to strengthen the economic ties between the US and Vietnam.
The total trading value was VND3,042bil ($190,12mil) last week, or VND608bil ($38mil) a day. Some 29.4mil securities were traded in the last five trading sessions, or 5.88mil units a session.
Regulation on foreign securities investors control to be enacted
The State Securities Commission (SSC) is drafting the regulation on foreign investors control which is expected to be promulgated in June. SSC is also considering terminating the authorized investment in Vietnam’s stock market via individuals in Vietnam.
The news was given by Nguyen Thi Lien Hoa, Deputy Chairwoman of SSC at the workshop on portfolio investment encouragement and management held in Hanoi on June 15.
Mrs Hoa said under the new regulation, competent agencies will grant trading codes to foreign investors, and ask to give reports on foreign investors’ transactions. Foreign investors have to provide necessary information to the management authority when they come to make
investments in Vietnam.
From the fourth quarter of 2006 to the first quarter of 2007, the portfolio investment into the stock market has been increasing sharply, which has made difficulties for the management authority.
The appearance of many foreign investors, who have big capital and professional investment method, has helped the stock market become more bustling. However, the state management authority has discovered more and more violations committed by foreign investors, which mainly relate to the information exposure. Many investors were found as making reports slowly and providing inadequate information, making the management work more difficult.
Source: VNE
Tuesday, May 29, 2007
4 more seafood companies seek listing
Four more seafood companies have registered with the State Securities Commission (SSC) to list on the stock exchange, according to the Viet Nam Association of Seafood Exporters and Producers.
The registering firms are Sea Minh Hai and Girimex from Mekong Delta's Bac Lieu province, Seapriexco No. 4 in Ho Chi Minh City and Seaprodex Da Nang from Da Nang city.
As of May 28, the SSC had welcomed 11 seafood companies as publicly traded firms.
Viet Nam 's seafood industry has been a high flyer in the country's turning economic fortunes, with exports fetching 1.335 billion USD in the first five months of the year, to which May's export value contributed 320 million USD, a year-on-year rise of 22 percent.
Source: VNA
The registering firms are Sea Minh Hai and Girimex from Mekong Delta's Bac Lieu province, Seapriexco No. 4 in Ho Chi Minh City and Seaprodex Da Nang from Da Nang city.
As of May 28, the SSC had welcomed 11 seafood companies as publicly traded firms.
Viet Nam 's seafood industry has been a high flyer in the country's turning economic fortunes, with exports fetching 1.335 billion USD in the first five months of the year, to which May's export value contributed 320 million USD, a year-on-year rise of 22 percent.
Source: VNA
Wednesday, May 23, 2007
HSTC tries again to apply real-time order matching scheme
The HCM City Securities Trading Centre (HSTC) will apply the real-time order matching scheme as of June 4, 2007, according to Tran Dac Sinh, HSTC Director.
Mr Sinh said that the real-time order matching, applied since May 18 on a trial basis, has been going smoothly, which paves the way for the official application of the scheme, slated for early June.
The real-time order matching scheme was previously planned to be applied on April 1. However, the plan was delayed to May 7 due to the slow preparatory works. After that only 12 out of 45 securities companies got ready for the new scheme, and the scheme application has been, once again, delayed.
Mr Sinh has also informed that HSTC will delay the date of applying the scheme on large-lot transactions (100-share lot instead of 10-share lot) until January 1, 2008.
Stock exchange to make IPO in 2010 at the latest
Regarding the shift from the securities trading centre to the stock exchange, Mr Sinh said that HSTC asks the Ministry of Finance to allow HSTC to operate under the new model on the occasion of the 7th anniversary of HSTC’s first operation day, July 20.
When becoming part of the stock exchange, the unit will operate under the mode of a one member limited company, which does not belong to the State Securities Commission (SSC) any more. The stock exchange will be independent in its operation, employ its own staff, and operates the market based on the Securities Law. The stock market will only have to consult with SSC on the cases when there are no specific regulations.
Mr Sinh said that the stock exchange will make the IPO (initial public offering) in 2010 at the latest.
On May 11, the Prime Minister released the decision on changing HSTC into the HCM City Stock Exchange (HOSE). The stock exchange has the total chartered capital of VND1tril ($62.5mil).
Source: VNE
Mr Sinh said that the real-time order matching, applied since May 18 on a trial basis, has been going smoothly, which paves the way for the official application of the scheme, slated for early June.
The real-time order matching scheme was previously planned to be applied on April 1. However, the plan was delayed to May 7 due to the slow preparatory works. After that only 12 out of 45 securities companies got ready for the new scheme, and the scheme application has been, once again, delayed.
Mr Sinh has also informed that HSTC will delay the date of applying the scheme on large-lot transactions (100-share lot instead of 10-share lot) until January 1, 2008.
Stock exchange to make IPO in 2010 at the latest
Regarding the shift from the securities trading centre to the stock exchange, Mr Sinh said that HSTC asks the Ministry of Finance to allow HSTC to operate under the new model on the occasion of the 7th anniversary of HSTC’s first operation day, July 20.
When becoming part of the stock exchange, the unit will operate under the mode of a one member limited company, which does not belong to the State Securities Commission (SSC) any more. The stock exchange will be independent in its operation, employ its own staff, and operates the market based on the Securities Law. The stock market will only have to consult with SSC on the cases when there are no specific regulations.
Mr Sinh said that the stock exchange will make the IPO (initial public offering) in 2010 at the latest.
On May 11, the Prime Minister released the decision on changing HSTC into the HCM City Stock Exchange (HOSE). The stock exchange has the total chartered capital of VND1tril ($62.5mil).
Source: VNE
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