Ho Chi Minh City Stock Exchange
Overview
The Ho Chi Minh City Stock Exchange (HOSE), located in Vietnam, is one of the country's two main stock exchanges, the other being the Hanoi Stock Exchange. Established in 2000, HOSE is the largest stock exchange in Vietnam, both in terms of market capitalization and the number of listed companies. As of 2020, the exchange had a market capitalization of over $150 billion, with more than 370 companies listed.
History
The Ho Chi Minh City Stock Exchange was established on July 20, 2000, following the approval of the Prime Minister of Vietnam. The exchange was initially known as the Ho Chi Minh City Securities Trading Center (STC). The first trading session took place on July 28, 2000, with two listed companies. Over the years, the exchange has grown significantly, both in terms of the number of listed companies and market capitalization.
Structure and Operation
The HOSE operates under the management of the State Securities Commission of Vietnam, which sets the regulatory framework for the Vietnamese stock market. The exchange operates on a continuous auction basis, with trading sessions from 9:00 AM to 3:00 PM, Monday to Friday.
Market Indices
The HOSE has two main indices, the VN-Index and the VN30-Index. The VN-Index is a capitalization-weighted index of all the companies listed on the HOSE. The VN30-Index, on the other hand, is a free-float adjusted, market capitalization-weighted index of the 30 largest and most liquid stocks on the HOSE.
Trading System
The HOSE uses the HOSE-Online trading system, which is based on the KRX trading system developed by the Korea Exchange. The system allows for continuous matching of orders, with a matching algorithm that prioritizes price and then time.
Listing Requirements
For a company to list on the HOSE, it must meet several requirements, including having a minimum charter capital of VND 120 billion, being profitable in the year prior to listing, and having no accumulated losses.
Notable Listed Companies
Some of the largest and most notable companies listed on the HOSE include Vinamilk, Vietcombank, and PetroVietnam Gas.