Arrangement to improve stock market transparency.
The StoxPlus Corporation has struck a deal with the State Securities Commission (SSC) to improve the transparency of Vietnam’s stock market and upgrade its status.
The two signed a Memorandum of Understanding (MoU) at the SSC’s head office on June 24. The ultimate goal of the cooperation is to increase the stability and sustainability of the stock market and enhance its prestige on the international financial market.
Vietnam’s stock market is evaluated by Morgan Stanley Capital International (MSCI) as a Frontier Market (FM), so this cooperation will work towards it being upgraded to Emerging Market (EM) status, allowing it to attract more cash flows from foreign funds and large investment companies.
Stoxplus will help the SSC to develop the stock market by improving the quality of information disclosure by listed public companies, processing data for both listed and unlisted public companies, and helping public companies with information disclosure in English, which are part of the information disclosure criteria for EM status. StoxPlus will also provide the SSC with access to the FinnPro Platform for statistics and research reports.
Speaking at the signing ceremony for the MoU, Ms. Nguyen Thi Lien Hoa, Vice Chairwoman of the SSC, highlighted the importance of the FiinPro Platform’s macro, industry and corporate data in the preparation of the SSC’s annual report and other regular reports.
Mr. Nguyen Quang Thuan, CEO of StoxPlus, said the company was proud to support improvements to information disclosure by public companies and market members, increase market transparency and development, and attract more foreign capital into Vietnam stock market.
As at the end of May, 19,150 foreign investors, 15.3 per cent of which are corporate investors, were trading on the Ho Chi Minh City Stock Exchange (HoSE) and the Hanoi Stock Exchange (HSE), an increase of 7.1 per cent year-on-year, Vietnam Securities Depository reported.
Vietnam’s two stock exchanges posted a combined market capitalization of over $62.17 billion as at June 24, with the HSE accounting for more than 89 per cent, according to official data.
StoxPlus was established in 2008 and became a strategic partner of the Nikkei Corporation and Quick Inc of Japan in 2014.
Vietnam plans to merge the two bourses, with the headquarters to be located in Ho Chi Minh City, HoSE Chairman Tran Khac Sinh revealed on June 27.
- StoxPlus HOSE