A raft of measures including midday trading, wider price fluctuation bands and the possible removal of some periodic trading and periodic order-matching sessions are being studied by the State Securities Commission of Vietnam (SSC).
SSC vice chairman Hoang Van Thu. Photo: Manh Tuan
At the Ministry of Finance’s third-quarter press conference on October 6, SSC vice chairman Hoang Van Thu said, regarding adjustments to trading hours and methods in the stock market, several measures including midday trading, wider price fluctuation bands and the possible removal of some periodic trading and periodic order-matching sessions are being studied by the SSC, while stock exchanges have also been instructed to assess the proposals.
The policy options are being studied based on impact assessments, with a key requirement being to ensure system safety, smooth trading and market stability.
“Regardless of whether the new policies achieve the desired impact, our priority remains ensuring system safety, smooth trading and stability.
Once the assessment results are available, the relevant options will be developed according to an appropriate roadmap and announced to give market participants sufficient time to prepare and make transition to meet the requirements before implementation,” said SSC vice chairman Thu.
Regarding the transfer of all stocks currently listed on the Hanoi Stock Exchange (HNX) to the Ho Chi Minh Stock Exchange (HSX), this is part of a programme to restructure the range of securities traded on the stock market and is being implemented according to the established roadmap.
The SSC is coordinating with the stock exchanges on related tasks, including testing the securities settlement, clearing and market data systems. The testing results so far have been relatively positive, with scenarios being carried out according to plan.
Under the expected roadmap, the transfer of all stocks currently listed on HNX to HSX will be completed in 2026. The specific timing will be determined based on impact assessments and system testing results, ensuring a safe and smooth transition.
Alongside the transfer of listed stocks, the SSC is studying a plan to classify securities into different groups based on the characteristics of each group and investors’ needs.
The plan is being developed based on four main criteria: charter capital size; foreign investors’ access; free-float ratio; and the status of the stock.
The status of a stock, including whether it is under warning, under control, subject to trading restrictions, temporarily suspended, or suspended from trading, will be considered to assess the level of compliance of companies participating in the market.
Deputy Minister of Finance Nguyen Duc Chi said that new policies for the market should be introduced proactively and promptly, in line with the government’s stock market development strategy.
“Once a policy has been assessed as appropriate, regulators and market operators need to complete the infrastructure, technical systems and necessary conditions, while ensuring safety and stability during operation,” Deputy Minister Chi said.
He also stressed that new policies must stem from actual market needs and address the requirements of a developed stock market.
Regulators need to clearly identify what the market currently needs to further improve policies, including issues such as trading bands, shortening the settlement cycle, moving towards T+0 trading, or studying the possibility of shortening the settlement cycle further.
“Such policies must be geared towards market development. As for the conditions necessary for implementation, it is the responsibility of regulators and market operators to prepare them adequately and ensure they are in place,” Deputy Minister Chi said.
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