The term Stock Exchange is no longer strange to investors in the market. HVA will learn more with investors in the article below.
What is a stock exchange?
The stock exchange (or stock exchange) is where securities transactions are carried out on the market. Here, investors can exchange, buy, sell, donate and transfer securities.
Products traded on the stock exchange include: stocks, bonds, fund certificates, warrants, deposit certificates, derivative products, investment cooperation products, etc.
Simply put, the exchange is an intermediary unit that processes securities transactions, supports companies in issuing or withdrawing securities, fulfills debt and capital obligations to investors, pays dividends, etc. In addition, this is also a playground for buyers and sellers of securities to exchange with each other. The exchanges also provide a large amount of information about businesses for investors to refer to when making investment decisions.
Benefits of businesses when listed on the stock exchange.
Listing on the stock exchange is the goal of many businesses. Once listed on the exchange, businesses can receive many significant benefits as follows:
- Increased ability to mobilize capital: Listing on the stock exchange helps businesses access a large source of idle capital from the public. When mobilizing capital through listing shares, businesses do not have to pay interest or repay principal like when borrowing, so they can proactively use the mobilized capital for the company's long-term goals and strategies.
- Promoting growth: The most important purpose of listing on the stock exchange is to attract capital into the company. Thanks to that, the enterprise has enough resources to invest in business development, expand production, improve the position of the enterprise in the market and attract more investment sources.
- Increase liquidity, equitize the company: When listed, securities can be purchased in very small quantities, investors can easily become shareholders of the company, as well as easily transfer and buy and sell, thereby increasing the attractiveness of the stock. This can also help businesses retain and attract new investors.
- Increase brand reputation: Enterprises to be listed on the stock exchange must be transparent and comply with strict regulations of the stock market. Thereby, investors, partners and customers will have more confidence in the enterprise.
Stock exchanges in Vietnam and conditions for listing
Currently, Vietnam has 3 centralized stock exchanges under 2 Stock Exchanges of Hanoi and Ho Chi Minh City including HoSE, HNX, UPCOM. These exchanges were established and operate under the management of the State Securities Commission.
Ho Chi Minh City Stock Exchange (HoSE)
HoSE is the abbreviation of Hochiminh Stock Exchange, the largest stock exchange in Vietnam. Established in 2000, the exchange has the participation of many stock codes as well as the participation of many of the largest investors.
HoSE currently manages the stock trading system with very strict conditions, so the companies issuing on the floor are all highly reputable. HoSE's stock code VN30 is one of the most valuable stocks on the market today.
Conditions for listing on HoSE
- Charter capital at the time of registration: from 120 billion VND or more according to audit report.
- At least 2 years of operation as a joint stock company.
- Return on equity (ROE) after tax from 5% or more.
- Business activities: Profitable in the previous 2 consecutive years, no overdue debt of more than 1 year, no accumulated loss up to the year of listing registration, complying with the provisions of law on accounting and financial reporting.
- Publicly and transparently disclose debts to members of the Board of Directors, Supervisory Board, Board of Management, major shareholders and related persons.
- There must be 300 or more shareholders holding at least 20% of voting shares (not major shareholders).
- Major shareholders, institutional and individual shareholders must commit to holding 100% shares within the first 6 months and 50% shares within the next 6 months, except for shares owned by the State.
- Complete and valid profile
Hanoi Stock Exchange (HNX)
HNX is the abbreviation of Hanoi Stock Exchange. Hanoi Stock Exchange officially started trading in 2009. This is also a highly reputable exchange.
For HNX floor, there is no opening price matching session but only closing price matching session. However, HNX floor will have an additional after-hours matching session to ensure market liquidity.
Conditions for listing on HNX
- Charter capital at the time of registration: from 30 billion VND or more according to audit report.
- At least 1 year of operation as a joint stock company.
- Return on equity (ROE) after tax from 5% or more.
- Business activities: No overdue debt of more than 1 year, no accumulated loss up to the year of listing registration, comply with legal regulations on accounting and financial reporting.
- There must be 200 or more shareholders holding at least 15% of voting shares (not major shareholders).
- Major shareholders, institutional and individual shareholders must commit to holding 100% shares within the first 6 months and 50% shares within the next 6 months, except for shares owned by the State.
- Complete and valid profile
UPCOM stock exchange
UPCOM stands for Unlisted Public Company Market, established in 2009 and managed by the Hanoi Stock Exchange. UPCOM conducts securities transactions of stocks that do not meet the listing standards on the HoSE and HNX exchanges.
To list on UPCOM, a company needs to satisfy the following conditions:
- Is a public company
- Centrally deposited shares at Vietnam Securities Depository (VSD)
- Registered to trade on UPCOM
- Complete and valid profile
In 2025, HVA Investment Joint Stock Company aims to be listed on the HoSE stock exchange, marking an important milestone in the development of the enterprise. HVA always continues to innovate, providing quality, transparent and effective investment products, aiming to bring maximum benefits to shareholders and partners, thereby affirming its pioneering role in the field of financial investment.
