Ho Chi Minh Stock Exchange

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HoChiMinh Stock Exchange (HSX)
HSX.gif
Founded 2000
Headquarters Ho Chi Minh City, Vietnam
Key People Chairman Nguyen Doan Hung, CEO and Deputy Chairman Tran Dac Sinh
Products VN Index
Website http://www.hsx.vn/hsx_en/Default.aspx

The HoChiMinh Stock Exchange (HSX), Vietnam's major securities trading exchange, started in 2000 as nominally communist Vietnam's first public market for trading listed stocks but was converted to the HSX in 2007 and now trades stocks, bonds and listed funds. HSX's growth shrank with the global credit crisis in 2008 after several years of strong performances but growth is expected to recover in 2009.

Background

The state-owned HSX, operated as a listed Vietnamese corporation, was officially created in May 2007 from the former Ho Chi Minh City Securities Trading Center (HoSTC) that was itself formed in 2000 with just two listed equities. The original governmental decree to create a stock exchange in Vietnam had been signed just two years earlier.[1] Currently the HSX trades 248 listed securities including 176 share listings, 68 bonds and four investment funds, all denominated in Vietnamese dong, with a total listed value of approximately $4.5 billion as of mid-March 2009.[2]

HSX is regulated by the State Securities Commission of Vietnam (SSCV), an autonomous arm of the Vietnamese government's Ministry of Finance. In August 2008, just before the global financial meltdown began, the SSCV widened its stock-trading bands on the HSX from the previous +/- 3% to +/- 5% for the fourth time that year, each time in reponse to market improvements, the SSCV stated.[3]

Unlike its counterpart, the smaller-cap Hanoi Securities Trading Center (HaSTC), the HSX lists mostly larger firms with a record of growth and profitability.[4] The HSX's VN Index serves as a benchmark for the overall performance of Vietnam's blue-chip equities market. Trades are settled through the Bank of Investment and Development of Vietnam (BIDV), a state-owned commercial bank, although some foreign-owned banks including HSBC and Deutsche Bank are licensed to offer custody services.

Key people

Nguyen Doan Hung is chairman of HSX's 5-person board of directors and is also deputy chairman of the SSCV.[5] In the second capacity, Hung gave media interviews in 2008 and 2007 in which he first nominated a national growth-rate target of 9% and then repudiated the figure.[6] HSX Deputy Chairman Truong Hung Long is also the CEO of HSX.

Latest news

The HSX is expected to recover from 2008's hosing with the VN Index rising by more than 17% in 2009, investment bank HSBC wrote in late February, adding that Vietnam is expected to record Asia's third-highest GDP growth rate behind China and India.[7] That would be a change from the previous year, when the VN Index lost two-thirds of its value and market capitalization of the HSX dropped from US$21.69 billion to US$9.84 billion.[8]

References

  1. HOCHIMINH STOCK EXCHANGE. HSX.
  2. CURRENT LISTING SCALE. HSX.
  3. Vietnam to widen stock trading bands next Monday. People's Daily.
  4. Vietnam Stock Exchange. Abacus.
  5. BOARD OF DIRECTORS. HSX.
  6. Vietnam may not reach 9% growth target. China Post.
  7. VN Index forecasted to increase by 17.6% by end of the year: says HSBC. IntellAsia.
  8. Investor Report December 2008. Vietnam Holding.
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