Margin trading bans announced by HOSE
Margin trading bans announced by HOSE
The Ho Chi Minh Stock Exchange has announced the list of 78 shares which are not eligible for margin trading in the last quarter of this year – with many of them under the radar of investors.
Margin trading refers to the practice of borrowing money from brokerage companies to trade a financial asset, which forms the collateral for the loan from the broker.
Many of illegible shares have trading time of less than six months, including multimedia firm Yeah1 Group Corporation (YEG), Vinhomes (VHM), FPT Retail (FRT), Century Land JSC (CRE), real estate developer Dat Phuong JSC (DPG) and Hai Phat Investment JSC (HPX).
The banking sector has two names, including Techcombank (TCB) and Tien Phong Bank (TPB). Two others operate in the aviation service sector, including Saigon Ground Service JSC (SGN) and SCSC Cargo Service Corporation (SCS).
Others are operating in the mineral industry, financial market, pharmaceutical sector and seafood processing and industrial manufacturing industries.
On the other hand, many stocks are under the alert, supervision and special supervision and are not allowed to trade on margin.
Many of these stocks are big companies but have suffered losses for a long time. They are Vietnam Ocean Shipping JSC, Hoang Anh Gia Lai JSC, Saigon Telecommunication & Technologies Corporation, Truong Thanh Furniture JSC and Ocean Group.
Three are under special supervision including seafood processing firm Hung Vuong JSC, Hai Phong Securities JSC and Phuong Nam Cultural JSC.
According to Decision 87/2017 issued by the State Securities Commission, securities which are subject to alert, control, suspended or cancelled status are not allowed for margin trading. Securities of issuers with audited financial statements which are not fully accepted by independent auditing firms or the companies violating tax law will not also be eligible for margin trading.
