HANOI STOCK EXCHANGE Opportunities in Vietnam Phuket July 2011

Transcription

1 HANOI STOCK EXCHANGE Opportunities in Vietnam Phuket July 2011

2 I Market Overview II HNX Markets III Development Orientations

3 I. Market Overview 3

4 Market Structure 28/7/2000, only 2 stocks listed in HOSE. 14/7/2005 HNX opened with only 6 stocks in the beginning. In 15/7/2011, 681 stocks were listed in both two markets. 4

5 Market Capitalization as percentage of GDP 50% 40% 30% 20% 10% 0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.2% HOSE HNX 11.4% 8.0% 31.7% 5.0% 16.7% 14.0% 8.0% 6.7% 5.70% 30.0% 29.9% 29.8% -Percentage of market cap around 0% during period from After HNX established 1 year, total market cap reach 22.7% of GDP, and grew up to 42% in 2007, then fluctuated around 38% of GDP. 5

6 Trading value HOSE HNX The average trading value per session grew up from $USD 0.9 mil in 2005 to $138 mil in (The figures in graph showed in billion VND) 6

7 Public companies HOSE HNX Unlisted companies Equitized companies but not registered 7% 9% 3% 81% - Total number of public companies is arround 4, Most of the biggest cap were not listed such as: Mobifone, Vinafone, Vietnam Petroleum Corporation, etc. 7

8 Registered account 13,500 13,000 12,500 Internationa l retail Internationa l Institution 1, ,200,000 1,000, ,000 Local Institution Local Retail 4,000 3,500 3,000 2,500 12,000 11, , ,000 2,000 1,500 1,000 11, , , The number of international account increased sharply from

9 Securities Companies Securities Companies -From 2012, the securities company 100% foreign owned is allowed to establish in Vietnam. - Up to 2011, 19/102 companies are foreign invested. Source: HNX Annual Reports

10 II. HNX Markets 10

11 HNX Markets Structure HNX Primary Market Secondary Market Shares Auctions Bond Bidding Listed Stocks Unlisted Public Companies (UPCoM) Government Bond

12 Primary market -Shares Auctions No. of equitized companies and auctioned value No. Equitized Companies Auctioned Value ($US mn.) Period from 2005 to 2007 is very successful for HNX s auctions. - The downtrend caused the decreased of auction activities. Source: HNX Annual Reports

13 Primary market Government Bond Bidding Total offers (USD mil.) Total winning bids (USD mil.) Winning ratio (%) (30/06) ,527 1,668 4,391 4,186 5, ,452 2, The capital demand is huge, increased every year. - The successful bidding number decreased because of Global recession. Source: HNX Annual Reports

14 Secondary market Listed companies Billion VND 140, , ,000 80,000 60,000 40,000 20, Number of companies listed in stock market increased from 6 (2005) to 387 (2011). Vietnam still face the challenges from falling exchange reserves, trade imbalance Listed value Market Capitalization Listed companies Source: HNX Annual Reports

15 Secondary Market -UPCoM Billion VND Trading Values Market Capitalization Registered Companies 4, , Companies Control of OTC market Narrowing the grey market. Widening the market Enhance Qualities of Stock -Transparency -Accountability Minimize Risks Systematic risks Individual risks Source: HNX Annual Reports

16 Secondary market -Bond Market Trillion VND Listed value Trading Value In 2008, local commercial banks bought large number of bonds from international organizations. -Trading volume of short term bonds is highest. Source: HNX Annual Reports

17 Trading Rules Listed Stocks UpCom G-Bond Trading time 8.30 a.m a.m. (Mon Fri) 8.30 a.m a.m& 1.30 p.m to 3.00 p.m( Mon Fri) 8.30 a.m a.m. (Mon Fri) Trading methods -Continuous order matching (accounts for 95% trading) - Negotiation Same Electronic Negotiation Request for quotes Reporting Matching principles Price and time priority Same Trading unit A round lot of 100 shares (none for negotiation) Same 1 bond Minimum trading Continuous order matching: 100 shares A minimum of 10 stocks (for negotiation transactions) Outrights: + Electronic negatiation: 100 volume Negotiation: 5,000 shares + Reporting: Repos: 1000 Tick size VND 100 (none for negotiation) same N/A Trading collar ±7% for stocks in a trading day ±30% for stocks on the retrading day (Stocks without trading for over 25 sessions) ± 10% for stocks in a trading day ± 40% for stocks on the retrading day (Stocks without trading for over 25 sessions) N/A Referenc e price Settleme nt Weighted average price of all executed trades by continuous order matching method of the previous trading day * T+3: continuous order matching Negotiation: -T+3: trading volume of <100,000 stocks -T+1: trading volume of >= 100,000 stocks same N/A Multilateral settlement T+3 Multilateral DVP T+1

18 III. Development Orientations

19 Development Orientations - Increase scale and consolidation of liquidity for stock market. - Increase efficiency to the market based on restructuring stock market, modernizing IT infrastructure. - Developing new products, supply the demands for investors. - Strengthen management, monitoring, inspection and handling of violations. - Integrate to world economic, following routes and in accordance with the development of market level.

20 For more information: HANOI STOCK EXCHANGE 81 Tran Hung Dao, Hanoi, Vietnam Tel: Fax: international@hnx.vn