Investors wait for new exchange for unlisted stocks

Saturday, May 3, 2008
Investors are awaiting the opening of an over-the-counter stock exchange in Hanoi for trading unlisted stocks after several recent scams, a move that has been delayed recently.
The exchange was scheduled to debut in March but the opening was put off by the Hanoi Securities Trading Center (HASTC) to the end of June.
The HASTC, which will operate the new exchange, did not assign a reason for the delay.
“The OTC market will safeguard investors from being cheated and improve liquidity for unlisted stocks,” an analyst said.
Investors, who struggle to sell unlisted stocks, usually approach retail dealers, who tend to rip off both sides.
40 firms to list
Nguyen Vu Quang Trung, HASTC deputy director, told Thoi Bao Kinh Te Sai Gon (Saigon Economic Times) newspaper: “At first, 20 brokerages, five insurers and 15 banks will list on the market.
We chose those companies because over-the-counter investors mainly trade in the financial and banking sectors.”
Trading regulations on the new platform wouldn’t be muchdifferent from the Hanoi and Ho Chi Minh City stock exchanges.
“Unlisted companies will have their shares traded at brokerages,” Trung said.
HASTC director Tran Van Dung added investors would be allowed to open a trading account for unlisted shares.
“Those who already have an account for trading listed stocks canuse that account to trade unlisted stocks. The account will be split into two.”
The State Securities Commission (SSC) and the HASTC were discussing the daily trading band for the new exchange, he said.
“We suggested [it] should be 20%.”
Figures from the SSC show there are 926 shareholding companies in the country. (Tuoi Tre)