Finance ministry inspectorate to check out ailing HCM City stock exchange
Finance ministry inspectorate to check out ailing HCM City stock exchange
The Ministry of Finance’s Chief Inspector has signed a decision to inspect the Ho Chi Minh Stock Exchange (HoSE) after its failure to resolve the chronic overload of its trading system.
The decision follows an order from Minister of Finance Ho Duc Phoc for an immediate inspection.
The inspection delegation will work out a work plan depending on the COVID-19 situation in the city.
Nguyen Hoang Hai, deputy chairman of the Viet Nam Association of Financial Investors, told Tuoi Tre (Youth) online, that the overload left investors unable to trade securities.
The problem began last year and has steadily worsened, weakening investors’ trust and causing them losses, he added.
According to evn.express.net, the system has been unstable for months, with orders simply frozen or executed very slowly, and stock prices are not displayed, forcing investors to take needless risks.
The worst happened on June 1, when there were excessive volumes and trading value topped VND21.7 trillion ($935.3 million) in just the morning session. The system sounded a warning, and HoSE was forced to suspend trading in the afternoon to prevent possible problems.
From June 2, it refused to allow traders to cancel or modify orders to prevent the system from overloading.
Leading brokerages have to date reallowed the use of the features though some are still enforcing limits during peak trading hours.
