Hanoi Securities Trading Center

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Hanoi Securities Trading Center (HaSTC)
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Founded March 2005
Headquarters Hanoi, Vietnam
Key People General Director Tran Van Dzung
Products HaSTC Index
Website http://en.hastc.org.vn/

The Hanoi Securities Trading Center (HaSTC) is Vietnam's fully automated trading counterpart to the more established HoChiMinh Stock Exchange (HSX), listing and trading government bonds and shares in small-cap and mid-cap firms mostly by auction. The HaSTC began trading in 2005 and will be transformed into an over-the-counter OTC securities market by 2010.

Background

The HaSTC was approved for establishment in August 2003 and offically launched in March 2005, followed four months later by a secondary share-trading market for new listings. The first two-year phase of its development comprised organizing and conducting auctions of new share listings and government bonds denominated in Vietnamese dong, while the next three-year phase is aimed at establishing a fully functioning Vietnamese OTC market.[1]

Listings

Like the HSX, the HaSTC is overseen and regulated by the State Securities Commission of Vietnam (SSCV). HaSTC-traded shares have lower capital, shareholding and profitability requirements for listing than those on HSX, with new listings requiring charter capital of 5 billion Vietnamese dong, 50 shareholders and one year of profitability after registering. As of March 20, 2009 the HaSC listed 177 stocks for trading with a total market value of 211.5 billion Vietnamese dong.[2]

HaSTC Index

The HaSTC Index is a captialization-weighted price index comprising all stocks traded on the HaSTC exchange[3] and serves as a benchmark for the small-cap and medium-cap stock markets in Vietnam compared to the more blue-chip VN Index. After two years of growth the HaSTC Index was clobbered in 2008 following the global credit crisis, losing more than two-thirds of its value over the year to close at 105.12 after opening 2008 at 322.34 amid hopes of hitting 500 by year-end.[4] Since then the HaSTC Index has slid below 100 to close on March 20 at 95.57.

Key People

Hanoi Securities Trading Center General Director Tran Van Dzung, 44, has held the position since the HaSTC began operating in 2005.[5]

Latest news

The HaSTC successfully auctioned off a $US100 million issuance of 2009's first dollar-denominated government bonds, carrying a 3% coupon, on March 20. The Vietnamese government plans to issue a further $200 million in US dollar bonds over the year to finance infrastructure projects and the budget deficit.[6]

References

  1. The establishment of HASTC. Hanoi Securities Trading Center.
  2. Trading information. Hanoi Securities Trading Center.
  3. HASTC INDEX. Bloomberg.
  4. HASTC-INDEX HIGHLIGHT. Mirae Asset Securities.
  5. General Director: Tran Van Dzung. Hanoi Securities Trading Center.
  6. Gov’t bonds worth US$100 million sold out. VOVNews.