Stocks sold off, HoSE speaks out on news of HoSE leader's resignation

This morning, the market spread rumors related to the resignation of a senior leader of the Ho Chi Minh City Stock Exchange (HoSE).

Faced with information that negatively impacted the market, HoSE quickly spoke up about the incident.

HoSE said that this agency, together with the Hanoi Stock Exchange, the Vietnam Securities Depository and Clearing Corporation, and market members, are testing the operation of the integrated information technology system (KRX system) as planned.

"The Department recommends that investors carefully select and carefully study information on the official portal at www.hsx.vn," HoSE's announcement said.

The leadership group (from left to right): Ms. Tran Anh Dao, Mr. Nguyen Vu Quang Trung, Ms. Nguyen Thi Viet Ha, Mr. Dau Khac Trinh, Ms. Ngo Viet Hoang Giao. *(Photo: HoSE).*

The current head of the agency is acting Chairwoman Nguyen Thi Viet Ha. The Executive Board currently consists of three members: Ms. Tran Anh Dao (Deputy General Director in charge of the Executive Board), along with two other Deputy General Directors: Mr. Nguyen Vu Quang Trung and Ms. Ngo Viet Hoang Giao. In addition, Mr. Dau Khac Trinh holds the position of Head of the Supervisory Board.

HoSE plans to develop a development strategy for the 2022-2026 period, with a vision to 2023, in line with the development strategy of the Vietnam Stock Exchange (VNX). The Exchange will coordinate the implementation of the roadmap for receiving listed companies from HNX in accordance with the regulations on restructuring the stock market.

The agency plans to organize stable and safe securities trading activities and deploy the KRX information technology system on schedule. HosE informed that this project will "go-live" on December 11 and then officially operate at the end of 2023.

Acting Chairwoman Nguyen Thi Viet Ha once affirmed that if market members are not ready, the Department will report to the Ministry of Finance and the State Securities Commission to take action.

The KRX system is expected to create a new breakthrough in integrating the securities trading system in Vietnam, improving many new features to move towards upgrading the market. Some important solutions such as intraday trading (T+0), short selling, shortening payment time, option contracts....

HoSE, formerly known as Ho Chi Minh City Securities Trading Center, was transformed under Decision 599/QD-TTg dated May 11, 2007 of the Prime Minister. This is a state-owned legal entity, organized as a single-member limited liability company.

The business activities of this Exchange depend heavily on liquidity in the stock market, as the main source of revenue comes from transaction fees. In 2022, HoSE recorded a total revenue decrease of 23% to VND 2,500 billion due to the market downturn. Profit after tax reached nearly VND 1,946 billion, down 23% compared to the record profit in 2021.

Rumors about the resignation of a senior HoSE leader due to the KRX project have had a heavy impact on the stock market this morning. The VN-Index at one point dropped nearly 40 points with a series of stocks hitting the floor.

At the end of the session on September 22, the HoSE representative index also recorded a decrease of nearly 20 points (-1.62%) to easily lose the 1,200 point mark, falling to the lowest level in nearly a month. The floor had 455 stocks decreasing in price (of which 29 stocks hit the floor), while only 70 stocks increased in price during the session.

A series of leaders were punished, HOSE tightened management of stocks on the floor . Management agencies tightened supervision and punishment of businesses/stocks on the stock market after violations by leaders of departments and agencies and leaders of listed companies.

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