the operations of vietnamese stock markets AT hanoi stock exchange HNX

the operations of Vietnamese stock markets
AT Hanoi Stock Exchange-HNX
Members of group 6:

1.
2.
3.
4.
5.

Nguyễn Thị Hoàng Hà (leader)
Vũ Thị Quỳnh Anh
Lê Quỳnh Anh
Trần Thị Hồng Vân
Lê Thị Minh Ngọc


contents
IV. Price change step and limits (HNX)

I. Listing requirements

II. Type of transaction; type of order

III. Trading time and trading session

V.Summary of Information disclosure
requirements

VI.Operations and index performance in 2014,

VII.Example of trading information of listed stock

2015


Introduction

-

Hanoi Stock Exchange (HNX) was born in accordance with Decision of Prime in 2009.

-

The HNX has organized share auctions, Government Bond biddings to mobilize capital for the State budget.

-

The HNX has operated three secondary trading markets: listed stock market, Government Bond market, and UPCoM
(Unlisted Public Company Market).

 


I.
1.

Listing requirements

Conditions for listing stock:

-    Being a joint stock company, at least VND 30 billion of charter capital.

-.

At least 01 year of operation in the form of Joint Stock Company by the time of registration for listing.

-.

At least 15% of the voting stocks of the company held by at least 100 shareholders who are not principal shareholders;

-  Shareholders being members of the Board of Directors, Supervisory Board, the Manager or General Manager, ....

-

 

There is valid dossier of stock listing registration as prescribed.


2. Conditions for listing bond
- Being a joint stock company, limited liability company or State owned enterprise; at least VND 10 of charter capital.

- The business result of the preceding the year must be profitable

- At least 100 persons own bonds which are issued in one round

- All bonds of one issue must have the same maturity date.

- There is valid dossier of bond listing registration as prescribed.

II. Type of transaction; type of order
1. Type of transaction

-

Continuous order matching method: is the method in which the system will automatically match buy orders will with sell orders right after they are put into
the trading system.

-       Periodical order matching method: is trading method executed by trading system where buy and sell orders are correspondingly matched at a specific point of
time.

-       Negotiation method: is the method whereby buyers and sellers negotiate with each other on the transaction conditions in advance, then the trading result will be
placed into the trading system.
 


2. Type of order

-      Limit order (LO): is an order to buy or sell a stock at a specific or better price. Better price is the price higher than the specific price in case of sell order and lower
than the specific price in case of buy order. LO is entered into the trading system in continuous order matching and prediocial order matching.

-      Market order:  is the buy order at the lowest sell price or the sell order at the highest buy price available on the market.
Market order is only entered into trading system in the continuous order matching session.
 
 


Types of market orders:
 

+ The Market To Limit order (MTL): is a market order in case it is not fully executed, the remainder of the order is changed into litmit order 

+ Match or Kill order (MOK) : is a market order which will be killed right after entering into the trading system if it is not fully executed.

+ Match and Kill order (MAK) : is a market order which may be fully or partially executed, the remainder of the order will be killed right after the order matching.
 
-      At The Close order (ATC): is a buy or sell order at the close price.


III. Trading time and trading session
-  Trading time of listed stock market:

Session

Morning session

Trading method

Continuous order matching

9:00 am – 11:30 am

Negotiation

9:00 am – 11:30 am

Break time

Afternoon session

Trading hour

11:30 am – 1:00 pm

Continuous order matching

1:00 pm – 2:30 pm

Periodical order matching for closing session

2:30 pm – 2:45 pm

Negotiation

1:00 pm – 3:00 pm


- Trading time of UPCoM

Session

Morning session

Trading method

Continuous order matching

9:00 am – 11:30 am

Negotiation

9:00 am – 11:30 am

Break time

 

Trading hour

11:30 am – 1:00 pm

Continuous order matching

1:00 pm – 3:00 pm

Negotiation

1:00 pm – 3:00 pm

Afternoon session

HNX organizes trading from Monday to Friday every week (except for holidays as regulated in the Law of Labor).


IV. Price change step and limits ( HNX )

1. STOCKS MARKET

Don’t regulations exchanges unit with stock transaction agreement. Applying weigh minimum exchanges with transaction

agreement are 5000 stocks.

-Stock exchange : weigh 1-99 stocks can product by transaction agreement ways in exchange system HNX or different forms
according to regulations of the Law

-Price change step : +/-10 %
-Price range for stock is calculated as below:
• Ceiling price = Reference price + reference price x price collar
• Floor price = Reference price – Reference price x price collar

After the above adjustment, if ceiling/floor price of stock is still equal to reference price, then there is adjustment as follows:
+Adjusted ceiling price = Reference price + one quotation unit
+Adjusted floor price = Reference price – one quotation unit


IV. Price change step and limits ( HNX )

2. BOND MARKET

Exchange unit with bond matched transaction are 100 bonds .
Don’t regulations exchanges unit with bond transaction agreement
Weigh minimum exchange with transaction agreement are 1000 bonds.
Bond exchange weigh 1-99 bonds
Don’t apply price change step with bonds


IV. Price change step and limits ( HNX )

3. UPCOM
Weigh minimum exchanges are 10 stocks or 10 bonds

- Price quotation units + stocks : 100 Dong and don’t apply price quotation units with bonds. Denominations are 10,000
Dong/stock and 100,000/bond .
- Price change step : +/-15% with stocks and it can change during in product time .


V. Summary of Information disclosure requirements

a. Information disclosure entities

Information disclosure entities on Hanoi Stock Enchange (HNX) include:

1. Listed institutions; (HHC)
2. Trading registration institutions ;
3. Member securities companies; (FPTS, Vndirects,..)
4. Institutions or individuals who implement the tender offer for listed/registered shares at HNX;
5. Principal shareholders, founding shareholders, PDMRs, officer authorized to disclose information and connected persons of
these objects according to Clause 34, Article 6 of Securities Law.


b. Information disclosure requirements

1. The information disclosure must be sufficient, accurate and timely as stipulated by law. Information disclosure entities are
responsible for the information disclosed.


b. Information disclosure requirements

2. The information disclosure of institutions who are Information disclosure entities as at Article 1 of this regulation must be performed by the
legal representative or the officer authorized to disclose information.

2.1. In case Information disclosure entities as at Clause 1, 2, 3 of Article I of this regulation disclose information, these entities must register the authorized information
disclosure officer with HNX according to the form at Appendix I of Circular No. 52/2012/TT-BTC issued on 05/04/2012 by Ministry of Finance, and concurrently send
the list of persons related to information disclosure officer (according to the attached form CBTT/SGDCKHN-01) with the CV of information disclosure officer within
ten (10) working days since the authorization takes effect.


b. Information disclosure requirements

2.2. In case Information disclosure entities as at Clause 4, 5 of Article I of this regulation authorize listed institutions/ trading
registration institutions/ member securities company or depository member to implement the information disclosure under the
approval of State Securities Committee (SSC), these objects must notify in writing (according to attached form
CBTT/SGDCKHN-02) with authorization letter/ valid authorization contract as stipulated by law.


b. Information disclosure requirements

2.3. In case of changing institutions, individual authorized to disclose information, Information disclosure officers as at Point
2.1 and 2.2 above must notify in writing (according to attached form CBTT/SGDCKHN-03) at least five (05) working days
before expected changing date.


b. Information disclosure requirements

3. Information disclosure entities as at Clause 1, 2, 3 of Article I of this regulation implement the information disclosure on their own
means of disclosure and concurrently send the information to HNX and SSC to report.

4. Information disclosure entities as at Clause 4, 5 of Article I of this regulation must send the information to listed institutions/
trading registration institutions and HNX and SSC simultaneously to report when implement the information disclosure. Founding
shareholder in the limited transfer period must report additionally to Vietnam Securities Depository.

b. Information disclosure requirements

5. Information disclosure entities as at Clause 1, 2, 3 of Article I of this regulation must register with HNX for the contact information
including: address, tel., fax, email, etc. In case of changing registered information, Information disclosure entities must notify in writing
(according to attached form CBTT/SGDCKHN-04) at least three (03) working days before the expected changing date

6. The date of information disclosure is the date that information appears on the website and/or annual report, other
publications of Information disclosure entity. Information disclosed on the website must specify disclosure time (date, hour).


b. Information disclosure requirements

7. The report date about the information disclosure is the date when Information disclosure entities send electronic data through the CIMS system,
email, date of sending fax, date of HNX receiving information disclosed in writing according to Dispatch mark of HNX
In case Information disclosure entities must send report in writing and electronic data simultaneously, the report date is the date when HNX has
received both of the reports.


b. Information disclosure requirements

8. The language of the disclosed information must be Vietnamese. In case required by law that the disclosed information can
be supplemented by other languages, the languages of the disclosed information include Vietnamese and other languages as
stipulated by law.
The words of disclosed information must be clear, easy to understand and avoid misleading for shareholders and
investors.


b. Information disclosure requirements

9. The disclosed information must be exact with the form promulgated together with Circular No. 52/2012/TT-BTC, this regulation and others
related. In case Information disclosure entities send information to HNX with wrong form or missing some information as requirement, HNX
will not disclose information on means of disclosure of HNX.

10. In case there is any change in the content of the disclosed information, Information disclosure entities must
report and send written explanation to HNX and SSC


VI.Operations and index performance in 2014, 2015

1

Listed stock market

The registered trading unlisted public companies market (UPCoM)

2

3

The government bonds


2014