What is the concept of upcom floor and hose floor? Let's take a look What is the difference between Upcom and HOSE? in HVA's article below!
Basic concepts of HOSE and Upcom floors
Let's learn the concept with HVA What is the difference between Upcom and HOSE? right below!
HOSE floor
What is HOSE floor?? Ho Chi Minh City Stock Exchange (HOSE) was established in 2000 and is the largest and most prestigious stock exchange in Vietnam. This is where large companies list and trade their shares, operating under the strict and transparent management of the authorities. With strict regulations on listing conditions, HOSE is considered the gold standard of the Vietnamese securities industry, contributing to protecting the interests of investors.
Upcom floor
Upcom was established in 2009 as a market for public companies not listed on the Ho Chi Minh City Stock Exchange (HOSE) or the Hanoi Stock Exchange (HNX). Enterprises on Upcom are usually small and medium-sized or in the development stage, aiming to move to larger exchanges. With simpler listing regulations than HOSE, Upcom creates favorable conditions for companies to access capital from the stock market.
Listing conditions
Listing conditions of What is the difference between Upcom and HOSE?? All will be answered by HVA below.
Listing conditions on HOSE
HOSE sets strict standards that companies must meet before being listed, including:
- Minimum charter capital is 120 billion VND.
- Business operations have been profitable for two consecutive years prior to listing.
- No overdue debt or financial violations.
- The management team has good management experience and a clear development strategy.
These regulations ensure that only companies with solid financial foundations, reputation and sustainable development capabilities are allowed to list on HOSE.
Conditions for listing on Upcom floor
The difference between Upcom and HOSE floors Upcom floor applies simpler listing conditions than HOSE, specifically:
- Participating businesses only need to be public companies.
- No minimum charter capital or business results required before listing.
- The listing procedure is quick and simple.
Thanks to that, Upcom brings flexibility to small and medium-sized companies, or businesses that do not meet the listing requirements on HOSE or HNX but still want to raise capital from the stock market.
Transparency of Upcom and HOSE floors
Transparency on HOSE
Currently HOSE floor is different from Upcom floor on transparency and management. Companies listed on HOSE must strictly comply with regulations on financial reporting, information disclosure and corporate governance. The financial statements of these companies must be audited by independent, reputable auditing units to ensure transparency and protect shareholders' rights. In addition, listed companies are also responsible for periodically disclosing information on business and financial situations, helping investors easily monitor and evaluate.
Transparency on Upcom
The regulations on information disclosure on Upcom are simpler than those on HOSE. Although companies listed on Upcom are still required to make periodic information disclosures, the frequency and scope of disclosures are often not as strict as on HOSE. This can create risks for investors because the information is not always sufficient to accurately assess the financial situation and operations of the enterprise.
Size and liquidity
Let's go together HVA Find out about the size and liquidity of What is the difference between Upcom and HOSE? ok
HOSE market size
With nearly 400 listed companies, HOSE is currently the largest stock exchange in Vietnam. Companies on HOSE are not only numerous but also have large capitalization, often leading companies in the industry with stable revenue and profit. This makes HOSE more attractive to investors, especially institutional and foreign investors. In addition, liquidity on HOSE is very high thanks to large trading volume and continuous cash flow.
Upcom market size
Upcom currently has more than 900 listed companies, mainly small and medium-sized enterprises. Compare HOSE and Upcom floors, liquidity on Upcom is significantly lower, due to the participation of mainly small investors and less strong cash flow. This can create risks for investors, especially in cases where quick divestment is needed in emergency situations.
Risk and return
Risks when investing in HOSE floor
Due to its high liquidity and strict listing requirements, investing in HOSE is generally lower risk than Upcom. However, this also means that the profit margin may not be as high, especially during periods of market stability. Investors in HOSE often prioritize safety and stability, aiming for long-term goals.
Risks when investing in Upcom floor
The difference between HOSE and Upcom floors is the floor Upcom often attracts venture capitalists who seek high-return opportunities from small businesses with growth potential. However, with low liquidity and limited information, investing in Upcom comes with higher risks. Therefore, investors need the ability to analyze in depth and accurately assess the potential of the business before making an investment decision.
Investment strategy
Investment strategy on HOSE
Investors on HOSE often prioritize businesses with a strong financial foundation and long-term sustainable growth potential. Blue-chip stocks are a popular choice due to their stability in value and steady growth. Investment strategies on HOSE often focus on long-term holding, in order to benefit from dividends and stock value growth over time.
Investment strategy on Upcom
How is Upcom different from HOSE? Investment strategies on Upcom are often short-term, with the goal of seeking quick profits from stock price fluctuations. Investors need to be sharp and have a high risk tolerance to take advantage of opportunities from some small businesses that are in the process of development. However, if holding stocks for a long time, investors can achieve significant profits if the business develops successfully and moves to list on major exchanges such as HOSE or HNX.
Conclude
Both HOSE and Upcom play an important role in the development of the Vietnamese stock market, but they serve different groups of investors with different goals and risk levels. HOSE aims for stability and safety, while Upcom offers high profit opportunities but also has great potential risks. Investors need to understand clearly The difference between Upcom and HOSE floors to choose the strategy that suits your goals.
HVA hopes that the information about What is the difference between Upcom and HOSE? live above will help you get an overview of Market News Stock trading and find the most suitable and reliable trading platform.
