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StoxPlus & HoSE to hold Emerging Market conference

Released at: 18:37, 20/10/2016

StoxPlus & HoSE to hold Emerging Market conference

Photo: Duc Anh

November 4 gathering in HCMC to discuss the path towards Vietnam gaining Emerging Market status from MSCI.

by Duy Anh

StoxPlus and the Ho Chi Minh City Stock Exchange (HoSE) will jointly hold a conference entitled “Vietnam’s Stock Market: On the Way to Emerging Market” on November 4 at the HoSE Exchange Tower at 16 Vo Van Kiet Street, District 1, Ho Chi Minh City.

The conference will provide a clear picture about Vietnam’s stock market and opportunities to exchange experience and ideas about market development, with the participation of local and foreign experts.

This is the second annual conference held by StoxPlus and HoSE, with support from Nikkei Inc. and QUICK Corp. from Japan. There will be about 250 in attendance, including representatives from investment and financial institutions from Vietnam, Japan, Singapore, Hong Kong, Shanghai, Thailand, Malaysia, the US and the EU.

Vietnam has attracted a lot of attention from foreign investors thanks to its sustainable economic growth in recent years and growth stories of private sector and public companies.

It remains, however, among frontier markets in the MSCI categories, which include Sri Lanka and Bangladesh. This has hindered it in attracting investment from major players such as global financial institutions and asset management companies, which have strategies to allocate their portfolio in global, regional or emerging markets.

Foreign investors now have the opportunity to increase their voting share up to 100 per cent in a public company in Vietnam when such companies have changed their foreign ownership limit (FOL) under current regulations.

In addition to the loosening FOL, a number of other actions are now being implemented by related government agencies towards the promotion of Vietnam’s stock market to Emerging Market (EM) classification by MSCI.

Questions up for debate at the conference include how Vietnamese Government agencies are dealing with the process, what are the main constraints on loosening FOL in Vietnamese public companies, and when can Vietnam’s stock market expect to be upgraded to EM status.

Addressing these concerns and as part of its cooperation with HoSE, StoxPlus has conducted a comprehensive review on FOL at listed companies in the VN-100 Index on HoSE. Vietnam’s leader in financial and business information has also conducted a survey to obtain opinions and feedback from more than 100 representatives of foreign institutional investors, including large asset management firms who have no exposure in Vietnam but who are waiting for change.

HoSE and StoxPlus will also present the key findings from their joint review of FOL on HoSE’s listed companies and the Foreign Institutional Investor Survey.

The event will receive technical support from the State Securities Commission (SSC), the International Finance Corporation (IFC), Nikkei Inc., QUICK Corp, and Indochine Counsel.

In related news, StoxPlus and the SSC signed a Memorandum of Understanding (MoU) in late June to increase cooperation for the stability and sustainability of Vietnam’s stock market and enhance its prestige in international financial markets. 

Vietnam has two stock exchanges offering investors nearly 700 companies with about $60 billion in market capitalization and daily trading value of nearly $100 million. Investor numbers are increasing day by day. According to figures from the SSC there were 79 securities companies in operation as at the end of September.

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