Merger of two stock exchanges likely
A project to merge the nation’s two stock exchanges has been mapped out and it will go before the Ministry of Finance at the end of the year, said the State Securities Commission (SSC).
Nguyen Son, head of the SSC’s Stock Market Development Department, said the project was part of a broader plan to restructure the stock market. But Son declined to reveal specifics on how to carry out the merger.
Capitalisation of the Hochiminh Stock Exchange (HOSE) is some 545 trillion dong, while that of the Hanoi Stock Exchange (HNX) is merely 96 trillion dong, Son added.
Nguyen Anh Vu, head of the securities teaching team at the HCM City University of Banking, said it was normal for a country to have more than one stock exchange.
The number of stock exchanges depends on the economy and the stock market scale and each of them has its own characteristics, Vu said.
But it is unnecessary to have two stock exchanges existing in Vietnam at the moment due to the lackluster market conditions.
The merger is expected to reduce technology, infrastructure, facility and human resource costs, and help securities firms cut down on the cost of connecting their systems between the two bourses.
Saigon Time Daily
Tags: vietnam stock, Vietnam stock market, VNindex