First securities firm to consider moving stock between exchanges
First securities firm to consider moving stock between exchanges
Stock brokerage VNDirect is the first company in Vietnam to consider moving its ticker from the main bourse in HCMC to Hanoi amid system overloads.
An investor looks at stock prices on a laptop at the office of VNDirect in Ho Chi Minh City. Photo by VnExpress/Quynh Tran.
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Its CEO, Do Ngoc Quynh, told VnExpress that the company’s board was reviewing the transition that would help protect its shareholders.
The overloads on the Ho Chi Minh Stock Exchange (HoSE), which is home to the country’s largest caps, is likely to continue and investors and brokerages are facing risks as they cannot place orders, he said.
Transitioning tickers from HoSE to the Hanoi Stock Exchange (HNX) is the easiest short-term solution, but authorities need to work out specifics in balancing differences between the two bourses, he added.
The HoSE has a daily trading band of 7 percent, and that of the HNX is 10 percent.
VNDirect will move its ticker back to the HoSE when its new system becomes operational, Quynh said.
HoSE’s 20-year-old system has been getting frequently overloaded in recent months due to a surge in the number of investors seeking greater returns amid low bank deposit rates.
The bourse is considering several options to resolve the issue, including increasing its minimum trading lot size from 100 to 1,000.
