Strengthen supervision of information disclosure obligations of listed organizations

Many banks planning move to HoSE

Mrs. Nguyen Thi Viet Ha, Acting Chairwoman of the HCM City Stock Exchange

The stock market in 2023 recorded a certain recovery in a difficult context. Could you please talk more about this?

- In 2023, in the context of many challenges, the stock market has recorded certain achievements. Regarding the stock index, as of November 30, VN-Index increased by 8.64% year-on-year to 1,094.13 points. By the end of November, 395 stock codes, 17 fund certificate codes and 237 covered warrant codes were officially listed and traded on the HCM City Stock Exchange (HoSE).

Over the past year, we have regularly focused on strengthening the supervision of information disclosure obligations of listed organizations as well as monitoring the operation of investors in the market.

The transparency and information disclosure have been gradually improved. In the first 10 months of 2023, the number of listed companies violating information disclosure decreased by 25.6% compared to the same period last year.

Regarding the supervision for investors’ transaction, we have promoted monitoring of unusual transactions as well as information disclosure obligations of internal shareholders and related individuals in transaction; promptly detected violations and reported them to the State Securities Commission (SSC). In addition, we have cooperated with the SSC, VSDC and VNX in monitoring and preventing transactions of internal shareholders and related individuals who have not fulfilled their information disclosure obligations, ensuring market transparency.

What solutions has been provided by HoSE to promote improving the quality of listed businesses in the past year?

- In 2023, we have deployed many solutions, dividing into two stages including listing registration and post-listing management. First of all, for listing registration documents, we closely review the listing registration documents, especially the capital increase process, ensuring compliance with the law, implement information disclosure and corporate governance obligations to ensure the quality of listed goods, openness and transparency of the market. For post-listing management, we conduct inspections and post-audits of information published by listed businesses to promptly detect errors and violations.

In 2023, we have signed a Memorandum of Cooperation with the Vietnam Association of Certified Public Accountants (VACPA) to exchange information during checking the listing documents as well as in the listing management process. We have also signed a Memorandum of Understanding with the International Finance Corporation (IFC) and the Association of Chartered Certified Accountants (ACCA) to improve the quality of environmental and social reporting of listed companies.

In order to support listed organizations to understand their role and further improve information transparency and corporate governance, we have supported listed organizations by instructing, raising awareness, and training firms in implementing corporate governance regulations, meeting international standards and practices.

According to Circular No. 69/2023 of the Ministry of Finance, all stocks will be transferred from Hanoi Stock Exchange (HNX) to HoSE no later than the end of 2025, and all UpCOM stocks will also be transferred to HoSE no later than 2026. How has HoSE prepared to manage these businesses as well as control the processing of new listing documents in the near future?

- Since Circular 57/2021/TT-BTC dated July 12, 2021 was issued and took effect from July 20, 2021, we have prepared to manage stocks listed and registered for trading at the HNX under the roadmap prescribed in Circular 57. We have coordinated with management agencies to review and revise regulations and instructions or internal processes to amend and promulgate promptly, creating favorable conditions for businesses to shift from the HNX to HoSE.

We have increased more personnel, especially personnel for the two departments of listing management and transaction monitoring, promoted training, and prepared for the transfer. We have cooperated with superior agencies and relevant parties in reviewing, amending and supplementing internal processes and coordination regulations, ensuring smooth management and supervision when receiving the work.

HoSE always focuses on trading system. In addition to maintaining the smooth, safe and stable operations of the trading system, we always focus on ensuring the system's capacity to be ready for the exchange transfer, and consider the stock division after the transfer, especially in the context of increased transactions and registrations in recent years. We also researched technologies in market management and monitoring, studying the practices of regional markets to consider and evaluate the possibility of application to the Vietnamese market.

What recommendations does HoSE have for investors in 2024?

- Currently, Vietnam's stock market has deeply implemented international integration. Investors should understand that developments in the Vietnamese stock market are not only affected by domestic information but also by economic and financial information in the world.

Amid many difficulties, in 2024, HoSE will closely control listing documents, monitor information disclosure by listed enterprises, and law compliance in market transactions; puplicize and update regulations and good practices on corporate governance to listed companies for sustainable development.

Investors should be cautious and study carefully when receiving information on social networks and mass media, especially information impersonating HoSE; research information about listed organizations before making investment decisions as well as have necessary skills and knowledge before deciding to invest and participate in market transactions.

Thank you Madam!