The Ministry of Finance has requested an urgent inspection of the Ho Chi Minh City Stock Exchange (HSX) because of the frequent, extended lagging issues with order placements.
|The MoF has ordered an urgent inspection of HSX|
Under the direction of Minister of Finance Ho Duc Phoc, the ministry’s (MoF) Department of Inspection has just decided to inspect the HSX. The two sides will begin working together soon, depending on pandemic developments.
Lagging has been reported on the stock exchange since early 2021. Congestions and slow response to orders have pushed numerous investors into unpredictable risks.
However, liquidity has not been increasing constantly and the trading value has been fluctuating on HSX around VND25-30 trillion ($1.1-1.3 billion) per session, more than 10 times over the beginning of 2020, before the COVID-19 pandemic broke out in Vietnam. About a month ago, the HSX’s trading system “hung” for 30-90 minutes, angering investors who could not conduct transactions.
In early June, while a huge number of orders was playing out and liquidity hit VND21.7 trillion ($943.5 million) in the morning, HSX decided to cancel the afternoon session to manage risks. HSX proposed raising the trading package from 10 to 100 and then to 1,000 (but has not been applied), moving some listed companies to the Hanoi Stock Exchange (HNX), and blocking functions like editing and cancelling orders.
Investors have been outraged since securities companies do not allow the editing and cancellation of orders on HSX since June 2 to reduce the load on the system. A week later, some companies have resumed these functions, but some securities were still locked at rush hour.
Recently, HSX announced connecting and testing the KRX application from South Korea between June 14 and August 6, 2021, to officially launch it in the third or fourth quarter of the year.
Previously, the Vietnam Association of Financial Investors (VAFI) sent a document to the MoF requesting a new leader of HSX. The VAFI proposed to find new experienced foreign experts and candidating for the head of HSX to resolve all obstacles and reduce the losses of investors on the stock exchange.