Tiểu luận the methods to trade stocks and understanding the operations

Trading information disclosure equipment for customers at each trading place; an electronic information page ensuring securities trading information and brokerage company information dis

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

Table of Contents

I Introduction: 3

II The operations of Hanoi Stock Market : 3

1 The history of Hanoi Stock Exchange : 3

2 Listing requirement of HNX : 4

3 Type of transaction and order: 6

4 Trading time and trading session: 6

5 Price changes step and limits: 7

6 The requirements of information disclosure: 8

III The operations and index performance of Hanoi Stock Market 10

IV Conclusion: 19

V References: 20

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 :

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:

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

 Bond market :

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:

Morning

session

Continuous order matching 9:00 am – 11:30 am

Afternoon

session

Continuous order matching 1:00 pm – 2:30 pm Periodical order matching for

closing session

2:30 pm – 2:45 pm

b) Trading time of UPCoM:

Session Trading method Trading hour

Morning

session

Continuous order matching 9:00 am – 11:30 am

Afternoon

session

Continuous order matching 1:00 pm – 3:00 pm

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

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 re-trading 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

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

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 The operations and index performance in 2014

a) 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

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

code

Name of issuers First trading date listed volume

(share)

listed value (VND thousand)

1 BAM Bac A Mineral And

Metallurgy Joint Stock Company

04/11/2014 30,000,000 300,000,000

2 BII Bao Thu Industrial

Development and Investment Joint Stock Company

22/09/2014 57,680,000 576,800,000

3 CEO C.E.O Group Joint

Stock Company

29/09/2014 68,623,996 686,239,960

4 CHP Central Hydropower

Joint Stock Company

16/04/2014 125,999,511 1,259,995,110

5 DGC Ducgiang Chemicals &

Detergent Powder Joint Stock Company

26/08/2014 42,209,132 422,091,320

6 KSK Mineral Ferrous

Metallergy JSC

19/02/2014 23,888,000 238,880,000

7 M AS Danang Airports

Services Joint-Stock Company

15/07/2014 3,008,816 30,088,160

8 NDF Nam Dinh Export

Foodstuff And Agricultural Products Processing JSC

12/09/2014 7,853,800 78,538,000

9 NFC Ninh Binh Phosphate

Fertilizer Joint Stock Company

03/03/2014 10,487,551 104,875,510

10 PEN Petrolimex

Installation No.III Joint Stock Company

25/09/2014 5,000,000 50,000,000

11 TVC TRI VIET

INVESTMENT MANAGEMENT CORPORATION

23/09/2014 24,096,860 24,096,860

12 VMI VISACO MINERAL

AND INVESTMENT JOINT STOCK COMPANY

09/10/2014 8,599,999 85,999,990

13 VTH VIET THAI ELECTRIC

CABLE CORPORATION

29/10/2014 5,000,000 50,000,000

2 The operations and index performance in 2015:

Operation and index performance in 2015

a) Trading volume (unit: VND)

a Continous order matching: 10,372,065,021

b Negotiation: 1,182,385,241

c Odd lot: 1,297,806

Total:11,555,748,068

Continuous order matching Negotiation Odd Lot

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

b) IPOS:

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

Stock

Code

Name of issuers First trading

date

Listed volume (share)

Listed Value (VND)

1 NHP NHP Production

Import-Export Joint Stock Company

31/12/2015 4,955,400 49,554,000,000

2 PSE South-East

PetroVietnam Fertilizer and Chemicals Joint Stock Company

18/03/2015 12,500,000 125,000,000,000

3 HKB Ha Noi - Kinh Bac

Agriculture and Food Joint Stock Company

25/3/2015 20,000,000 200,000,000,000

4 KVC Kim Vi Inox

Import Export Production Joint Stock Company

14/4/2015 16,500,000 165,000,000,000

Enterprise Investment and Development Joint Stock Company

20/05/2015 10,000,000 100,000,000,000

6 HVA Hung Viet Green

Agriculture Joint Stock Company

30/07/2015 5,000,000 50,000,000,000

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

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 c 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

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

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

V References:

- The National Assembly (2006) Law on Security Socialist Republic of Vietnam

- Hanoi Stock Exchange website: http://hnx.vn

http://thuvienphapluat.vn/van-ban/Chung-khoan/Quyet-dinh-323-

QD-SGDHN-2010-Quy-che-Thanh-vien-Giao-dich-So-Giao-dich-chung-khoan-Ha-Noi-248090.aspx

- Decision No 250 / QD-SGDHN http://thuvienphapluat.vn/van-ban/Chung-khoan/ Quyet-dinh-so-250-QD-SGDHN-2013-Quy-che-cong-bo-thong-tin-tai-So-giao-dich-Chung-khoan-Ha-Noi-248102.aspx

- Circular 52/2012 / TT-BTC

http://thuvienphapluat.vn/van-ban/Chung-khoan/Thong-tu-52- 2012-TT-BTC-huong-dan-cong-bo-thong-tin-tren-thi-truong-chung-khoan-137771.aspx