CASE STUDY
The methods to trade stocks and understanding the operations
of Hanoi Stock Exchange.

Group 8:
Bui Viet Anh
Nguyen Hoang Hai
Do Khanh Huyen
Nguyen Thao Ly
Le Thi Nhat Thao
Nguyen Linh Trang (Leader)

National Economic University
Date: May, 16th 2016


Table of Contents

I.

Introduction:
As we know, established in 2000, Vietnam's stock market has
experienced 15 years of construction and development, the achievements
brought the breakthrough but not loss but also contributes to the country's
economic development.
So, in this article, we will learn about the Hanoi stock exchange, is part of
Vietnam's stock market.

II.

The operations of Hanoi Stock Market :

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1. The history of Hanoi Stock Exchange :
Hanoi Stock Exchange (HNX) was born in accordance with Decision
No.01/2009/QĐ-TTg by Prime Ministeron the basis of transforming and
restructuring Hanoi Securities Trading Center which was established upon
Decision

No.

127/1998/QĐ-TTgand

launched

on

08/03/2005.

On

24/06/2009, the HNX was inaugurated as a State-owned single - member
limited liability company with the Ministry of Finance as a representative.
Being an organizer and regulator of the securities market, the HNX has
organized share auctions, Government Bond biddings to mobilize capital for
the State budget. In parallel, the HNX has operated three secondary trading
markets on a modern technological structure, including listed stock market,
Government Bond market, and UPCoM (Unlisted Public Company Market).
The optimal goal of the HNX is to operate an transparent, equitable and

efficient market, develop new products, attract domestic and foreign
investments, and prove itself as an important capital mobilizing channel of the
economy, ensuring the interest of investors and market participants.
2. Listing requirement of HNX :
a) Eligibility for trading members on HNX :
Pursuant to Article 3, Trading Member Regulations of HNX attached to
Decision No.323/QĐ-SGDHN dated 04 June 2010, eligible criteria for an HNX
trading member are as follows:
1. Being a securities company with broker service license;
2. Accepted by Vietnam Securities Depository to be a deposit member;
3. Having adequate material and technical infrastructure in securities
trading:
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3.1. Order receiving, transferring system and end terminal ensuring
stable connection with HNX trading system;
3.2. HNX end-of-day and real-time trading information delivery
equipment for investors at each place of trading;
3.3. Trading information disclosure equipment for customers at each
trading place; an electronic information page ensuring securities trading
information and brokerage company information disclosure;
3.4. Professional software for trading and settlement activities meeting
all technical and professional requirements specified by HNX;
3.5. Participation in creation of general data connection line according to
HNX regulations;
3.6 Backup system in case of service outage (server, connection line, grid
electricity, etc.)
4. Having a competent and experienced directive board and work staff
in financial, securities industries with honesty and good professional ethics;

4.1 Director has to meet legal requirements for Directors of securities
companies;
4.2 Eligible personnel are promoted to trading representatives;
4.3 IT manager has bachelor in IT with 1 year of experience in IT;
4.3. At least 02 IT officiers with certificates in security and business;
4.4 All company personnel are obliged to comply with the code of
conduct.
5. Other requirements by HNX if necessary.
b) Data:
• Stock market :
Value : 80.27
Change : -0.13
Volume : 44,138,884
UPCOM :
Value : 55.44
Change : -0.28
Volume : 9,227,584
•

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•

Bond market :
Value

Change

Change %


Clean price

104.45

-0.2920

-0.2788

Dirty price

104.48

-0.2657

-0.2537

3. Type of transaction and order:
a) Type of transaction:
-Continuous Auction ( pp giao dịch khớp lệnh liên tục)
-Put through trading (pp giao dịch thoảthuận)
b) Type of order:
- price priority
- time priority
- if buy and sell orders satisfy price. The excuted price is the price of
the order entered into the system first
4. Trading time and trading session:
a)

Trading time of listed stock market:


Session

Trading method

Trading hour

Morning

Continuous order matching

9:00 am – 11:30 am

session

Negotiation

9:00 am – 11:30 am

Break time

11:30 am – 1:00 pm
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Afternoon

Continuous order matching

1:00 pm – 2:30 pm


session

Periodical order matching for closing 2:30 pm – 2:45 pm
session
Negotiation

b)

1:00 pm – 3:00 pm

Trading time of UPCoM:

Session

Trading method

Trading hour

Morning

Continuous order matching

9:00 am – 11:30 am

session

Negotiation

9:00 am – 11:30 am


Break time
Afternoon

11:30 am – 1:00 pm
Continuous order matching

1:00 pm – 3:00 pm

Negotiation

1:00 pm – 3:00 pm

session
HNX organizes trading from Monday to Friday every week (except for
holidays as regulated in the Law of Labor).
5. Price changes step and limits:
The reference price of newly listed stocks on the first trading day is
calculated as follows:
a) Reference price was applied to newly listed stocks on the first trading
day will be proposed by the listed company or the consultant company (if
available) and approved by the HNX.
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b) For 03 consecutive trading days since the first trading day, if the
average-weighted price has not been defined and used as the reference price
in the next trading session, the listed company or the consultant company (if
available) has to recalculate the reference price.
In case of stocks with over 25-session trading suspension, on the retrading day, the reference price will be decided by the HNX and approved by

the State Securities Commission.
6. The requirements of information disclosure:
It was announced in article 3, Decision No. 250 / QD-SGDHN dated 06 January
2013 of HNX's General Director.
1. The information disclosure must be sufficient, accurate and punctual
as prescribed by law. Subjects disclosure must take responsibility for the
information published.
2. The information disclosure must be made by the legal representative
of the company or the person authorized to disclose information. The legal
representative of the company shall be responsible for the accuracy, the
punctuality and the sufficiency of the information disclosed by the person
authorized to disclose.
3. The information disclosure must be made concurrently with the report
to the SSC and SE on the disclosed information contents, in particular
4. Objects to disclose information must submit information published to
listed organizations / institutions registered transactions concurrently to HNX
and SSC to report. Particularly founding shareholders during the transfer is
limited to reporting additional Securities Depository Center Vietnam.
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5. The objects publish information must register with the HNX contact
information including address, phone, fax, email electronic (email) ... where
there is a change registration information, objects to disclosure of information
on written notice less least three (03) working days prior to expected changes.
6. Date of disclosure is the date the information appears on electronic
communications (hereinafter referred to as the website) and / or the Annual
Report and other publications of the subject disclosure. Information published
on the website must clearly state the time (days, hours) disclosure.
7. Date of report on the disclosure of information is on the disclosure

object data sent via e-CIMS system, email, date of sending the fax, on HNX
public information received by document tracking documents sent to the HNX.
Where the subject disclosure report must be sent simultaneously as text
and electronic data, the reporting date for the publication of information is on
HNX received a full data electronics and documents.
8. The language of information disclosure on the Vietnam securities
market must be Vietnamese. In case the law prescribes the additional
information disclosure in another language, the language of information
disclosure shall include Vietnamese and the other language as prescribed.
The language in the disclosure of information must be clear, easy to
understand and avoid misleading shareholders and the investing public.
9. The disclosure must be properly prescribed form issued Circular
52/2012 / TT-BTC, these Regulations and other relevant regulations. Where
the objects disclosure send information disclosed to the stock exchanges in
Hanoi wrong form or lack of information on demand, HNX will not disclose
information on the means disclosure of the Hanoi stock exchange.

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10. In case of changing the content of information published, objects to
disclosure of information and a written report explaining the HNX and SSC.
III.

The operations and index performance of Hanoi Stock Market
1.
a)

The operations and index performance in 2014
Trading volume (unit: VND thousand) :


Figure 1 : + negotiation : 992,191.267
Figure 2 : + Continuous order matching : 15,989,833,977

Figure 3 : + Odd Lot : 1,681,815
Figure4 : + Total : 16,982,025,244
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b)

IPOS :
+ According to HNX statistics, in 2014, have recorded big fluctuation, there
was 13(BAM, BII, CEO, CHP, DGC, KSK, MAS, NDF, NFC, PEN, TVC, VMI and
VTH) issuers have sold their stock to the public for the first time. As we know,
IPO is in short of initial public offering (IPO) is the first time of stock by a
private company sell to the market. The total of listed stocks in HNX at the
end of 2014 were 365 with the total of listed volume approximately 9.327
million stocks
No

Stock

1

code
BAM

Name of issuers
Bac A Mineral And


First trading date

listed volume

listed value

04/11/2014

(share)
30,000,000

(VND thousand)
300,000,000

22/09/2014

57,680,000

576,800,000

Metallurgy Joint Stock
Company
2

BII

Bao

Thu


Industrial

Development

and

Investment Joint Stock
CEO

Company
C.E.O Group

Joint

29/09/2014

68,623,996

686,239,960

4

CHP

Stock Company
Central Hydropower

16/04/2014


125,999,511

1,259,995,110

5

DGC

Joint Stock Company
Ducgiang Chemicals &

26/08/2014

42,209,132

422,091,320

19/02/2014

23,888,000

238,880,000

15/07/2014

3,008,816

30,088,160

12/09/2014


7,853,800

78,538,000

3

Detergent
6

KSK

Powder

Joint Stock Company
Mineral
Ferrous
Metallergy JSC

7

8

M AS

NDF

Danang

Airports


Services

Joint-Stock

Company
Nam Dinh
Foodstuff

Export
And

Agricultural Products
Processing JSC
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9

NFC

Ninh Binh Phosphate

03/03/2014

10,487,551

104,875,510

25/09/2014


5,000,000

50,000,000

VIET

23/09/2014

24,096,860

24,096,860

CORPORATION
VISACO
MINERAL

09/10/2014

8,599,999

85,999,990

29/10/2014

5,000,000

50,000,000

Fertilizer Joint Stock

10

PEN

Company
Petrolimex
Installation

No.III

Joint Stock Company
11

TVC

TRI
INVESTMENT
MANAGEMENT

12

VMI

AND

INVESTMENT

JOINT
13


VTH

STOCK

COMPANY
VIET THAI ELECTRIC
CABLE
CORPORATION

2.

The operations and index performance in 2015:
Operation and index performance in 2015

a)
a.
b.
c.

Trading volume (unit: VND)
Continous order matching: 10,372,065,021
Negotiation: 1,182,385,241
Odd lot: 1,297,806
Total:11,555,748,068

Continuous order matching
Negotiation
Trading volume Trading value
Trading volume Trading value
10,372,065,021 122,139,549,662.2 1,182,385,241 12,896,328,563.4


b)

Odd Lot
Trading volume Trading value
1,297,806
19,005,086.805

IPOS:
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a.

30 new stocks (NHP, PSE, HKB, KVC, DPS, FID, HVA, TA9, PCE, PSW, ACM, CTT,
DP3, SMN, PHP, PDB, G20, PMP, PMB, VMS, DGL, MBG, PTD, SGO, TFC, PCN, PBP,
TTB, VSA và TEG)
Stock market in 2015 did not change much compare to 2014. With 248
trading days, including 123 rally, fell 125 points, the HNX-Index lost 3.02
points total (-3.64%) compared with the end of 2014, stopped at 79.96 points
at the end of trading on 31/12/2015

1

Stock
Code
NHP

2


PSE

3

HKB

4

KVC

5

FID

6

HVA

Name of issuers
NHP Production
Import-Export
Joint
Stock
Company
South-East
PetroVietnam
Fertilizer
and
Chemicals Joint
Stock Company

Ha Noi - Kinh Bac
Agriculture and
Food Joint Stock
Company
Kim
Vi
Inox
Import
Export
Production Joint
Stock Company
Vietnam
Enterprise
Investment and
Development
Joint
Stock
Company
Hung Viet Green
Agriculture Joint
Stock Company

First
trading
date
31/12/2015

Listed volume
(share)
4,955,400


Listed Value (VND)

18/03/2015

12,500,000

125,000,000,000

25/3/2015

20,000,000

200,000,000,000

14/4/2015

16,500,000

165,000,000,000

20/05/2015

10,000,000

100,000,000,000

30/07/2015

5,000,000


50,000,000,000

49,554,000,000

b- 18 stocks delisting (PFL, BTH, SD1, PTM, LM3, SSG, VNN, VPC, PPG,
BVG, MAX, CTM, TSM, PID, V15, FIT, HPC và PHH)
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3.

Example of trading information of a listed stock of Vietin Bank:

Securities Joint Stock Company Commercial Bank of Vietnam ( Securities
Industry and Trade Company - VietinbankSC ) precursor is Securities
Company Limited and Commercial Bank of Vietnam được established under
Decision No. 126 / QD -HDQT - NHCT1 September 1, 2000 of the Board of
management and commercial Bank of Vietnam , the initial charter Cap is 55
billion.
2004 : Raise charter Cap 105 billion.
2007 : Raise charter Cap 300 billion.
2008 : Increase Cap charter to 500 billion .

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Date 24/07/2009 Hanoi Stock Exchange has approved the listing decision of
the Securities shares Industrial and Commercial Bank of Vietnam ( Stock
Code : CTS , the number of listed shares : 78,993,400 shares ) .

Dated 12.31.2015 , the chartered capital is 837 303 380 000 VND was raised .
Trading imformation of CTS

The statistics on the stock market of CTS

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IV.

Conclusion:

In conclusion, 2015 was a remarkable year for Vietnam stock market
when many policies, regulations governing innovative development was
issued to the market in depth, closer to international practices; This is also the
Vietnam stock markets continue to perform strongly restructuring ... The
achievements of 2015 is an important prerequisite to entering 2016,
Vietnam's stock market development optimistic.

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V.

References:
The National Assembly. (2006). Law on Security. Socialist Republic of

-

Vietnam.

-

Hanoi Stock Exchange website:
Decision
No.323/QĐ-SGDHN
/>
-

Decision No. 250 / QD-SGDHN />
-

Circular

52/2012

/

TT-BTC

/>
ban/Chung-khoan/Thong-tu-52-2012-TT-BTC-huong-dan-cong-bothong-tin-tren-thi-truong-chung-khoan-137771.aspx

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