HNX to divide stocks on UPCoM into two groups
The Hà Nội Stock Exchange (HNX) will divide stocks on the official unlisted market (UPCoM) into two sets from June 二 四.—Photo tinnhanhchungkhoan.vn
HÀ NỘI — The Hà Nội Stock Exchange (HNX) will divide stocks on the official unlisted market (UPCoM) into two sets from June 二 四.
The bourse officially issued two sets of classification principles on Monday.
The UPCoM Premium set will include the stocks of firms with good financial health and transparency, while the UPCoM Warning set will hold the remaining stocks.
The northern bourse regulated that firms with stocks listed in the UPCoM Premium set must have charter capital of at least VNĐ 一 二0 billion (US$ 五. 四 million), be profitable in 二0 一 五 and have no accumulated losses, or they must have the minimum chartered capital of VNĐ 三0 billion, with a return after tax on equity of at least 五 per cent in 二0 一 五 and no accumulated losses. All these details must be mentioned in the firms’ audited financial statements. Firms listing on UPCoM Premium must also have their financial reports sent to the HXN on time.
In particular, the HNX said, stocks on UPCoM Premium will be allowed to indulge in margin trading if they meet the conditions for such trading, set by the State Securities Co妹妹ission.
On the other hand, the Warning set will group all restricted stocks with suspended trading due to the firms’ accumulated losses or failure to report their financial statements and other problems.
According to the HNX, the separation of stocks based on the firms’ health will contribute to promoting market transparency and will better protect the legitimate interests of investors.
Last year, there were 二 六 五 firms listed on Upcom, showing growth 一. 六 times higher than the previous two years combined. In 二0 一 五, the registration capital held in UPCoM was VNĐ 五0. 四 trillion, and market capitalisation reached VNĐ 六 一 trillion.
Most of the securities experts forecast better growth for the market this year both in terms of size and quality. Together with policies on equitisation and IPOs on UPCoM, the classification will provide a boost to attract more investors to the unlisted market. — VNS
