Inside the Hanoi Stock Exchange trading floor (Photo: hnx.vn)Hanoi (VNA) — The Hanoi Stock Exchange (HNX) recently issued a stockclassification code on the Unlisted Public Company Market (UPCoM), in order tohelp investors keep closer watch on existing companies’ owners’ equity andprepare to categorise a large number of goods to be released into the marketsoon.
Classification rules on the UPCoM will categorise registered stocks into threecategories, except for stocks on the Investors Warning list.
Under the system, stocks issued by companies or organisations with a registeredowner’s equity of more than 1 trillion VND (44.67 million USD) will belong tothe UPCoM Large category, while stocks from those with 300 billion VND (13.4million USD) to 1 trillion VND in equity will be classified as UPCoM Medium.The UPCoM Small is for those from 10 billion VND (446,747 USD) to below 300million VND.
These lists will be displayed on the live screens at the HNX’s headquarter in Hanoiand will be reviewed and updated on an annual basis. There are exceptions forstocks whose companies fail to meet the required level of capital, stocks beingreplaced by another or exchanged between lists.
UPCoM classification, based on levels of current capital, will sort registeredcompanies’ stocks into their respective list according to the company’s owner’sequity, which will be calculated from the closest balance sheet stated in thelatest audited and published financial report.
In case the registered organisation is the mother company of another firm or isa firm with non-legal entity subsidiaries, owner’s equity will simply be basedon audited financial reports.
The new classification rule will replace the UPCoM Premium currently beingused, and the official list of categorised stocks will be published by the HNXon June 24, 2017 on the occasion of the UPCoM’s eighth year in operation.
For the first five months of 2017, 125 businesses have been newly listed on theUPCoM, with an average of 10.74 million shares being traded each session,amounting to 202.9 billion VND (9.06 million USD). This marks a 10.2 per centincrease in terms of quantity traded and 62.4 percent in terms of qualitycompared to the same period in 2016.
At the end of May 25’s session, there were a total of 540 listed companies onthe UPCoM, with 419 trillion VND (18.71 billion USD) in capital and 185.55trillion VND (8.28 billion USD) in traded value.-VNA
VNA
