January 08, 2018 | 21:10 (GMT+7)
More than 700 businesses trade on UPCoM
The Hanoi Stock Exchange (HNX) said that its Unlisted Public Company Market (UPCoM) welcomed 11 newly registered stock codes, increasing the total number of businesses trading on the bourse to 701 as of January 5.
The new comers included VNPost Express Joint Stock Company (coded EMS),
Da Nang Security Company (coded DSC), Hanoi-Nam Dinh Beer Joint Stock
Company (coded BBM) and Hanoi School Books and Equipment Joint Stock
Company (coded HAB).
Total transactions were estimated at over VND 247 trillion (USD 10.8
billion) and UPCoM’s market capitalization reached VND 719.4 trillion
(USD 31.67 billion) so far.
Last year, UPCoM saw a leap in both market scale and liquidity. An
average 11.6 million shares were traded at each transaction with average
value at VND 218 billion (USD 9.6 million), up 35 percent in volume and
71 percent in value as compared to the previous year.
The HNX attributed the sound results to an array of policies which
encourage enterprises to trade on UPCoM. Especially, the Ministry of
Finance’s Circular No.115/2016/TT-BTC was billed as a driving force for
the bourse’s development when it attaches share auctions as part of
equitization with trading registration on UPCoM.
A line-up of workshops and training courses were held by the HNX to
help local businesses get updated with latest regulations and
understand the Government’s policy on state-owned enterprises (SOEs)
restructuring in companion with stock market participation
Particularly, the HNX issued a set of regulations to classify codes
on the UPCoM based on capital scale to make it easier for investors to
follow existing companies. The exchange is also making preparation for
the classification and management of a large number of commodities to be
released into the UPCoM market soon.
The registered stocks on UPCoM are now grouped into three
categories: stocks issued by companies with registered owner’s equity of
more than VND 1 trillion (USD 44.67 milion) belonging to the UPCoM
Large category, stocks from those with VND 300 billion (USD 13.4 million) to VND 1 trillion (USD 44.67 million) belonging to the UPCoM Medium
and those from VND 10 billion (USD 446,700) to under VND 300 billion (USD 13.4 million) classified as UPCoM Small.
Inspection of businesses’ information came to the HNX’s attention as well.
In the coming time, the HNX will work to improve transparency for
UPCoM and enhance the market’s liquidity. As part of efforts to increase
attractiveness of the market, the HNX will study the establishment of a
market for start-up firms.
Source: VNA