Banks’ listing: no way back

07-Aug-2019 Intellasia | Tin nhanh chung khoan | 6:02 AM Print This Post

Under the new policy, banks must list shares on the stock market by the end of 2020. Thus, they have less than one year and a half to carry out this task.

On July 30th 2019, more than 419 million shares of Vietnam Thuong Tin Commercial Joint Stock Bank (VietBank) were officially put into trading on the Unlisted Public Company Market (UPCoM) with the VBB stock code. The reference price on the first trading day was 15,000 dong per share. This is the first bank stock to be on the UPCoM this year.

Viet Capital Commercial Joint Stock Bank (VietCapitalBank) is the next name to list its shares on the UPCoM. The bank finalised the list of shareholders to register the shares at the Vietnam Securities Depository (VSD) on July 31st 2019.

In addition to the above names, some other banks such as Orient Commercial Joint Stock Bank (OCB), An Binh Commercial Joint Stock Bank (ABBank), Nam A Commercial Joint Stock Bank (NamABank), etc. have also planned to list their shares but only VietBank is officially listed.

In fact, some banks finalised their shareholder list for share registration a few years ago, but their listing plan were postponed due to many reasons, in which the main cause is the unfavourable stock market.

General director of Nam A Commercial Joint Stock Bank (NamABank) Tran Ngoc Tam said that the bank will list its shares on the HCM City Stock Exchange (HoSE) this year. After the 2019 annual general meeting, NamABank plans to attract more foreign capital to raise capital and improve financial capacity and then carry out the listing. Previously, in 2018, NamABank’s shareholders approved the plan to register the bank’s shares on the UPCoM.

Talking to Dau tu Chung khoan newspaper, representatives of Lien Viet Commercial Joint Stock Bank (LienVietPostBank) and Vietnam International Commercial Joint Stock Bank (VIB) also said that their shares will soon be transferred from the UPCoM to HoSE in 2019 and 2020.

No way back

Under the provisions of Circular 180/2015/TT-BTC of the Ministry of Finance, banks must list their shares on the stock exchanges (including HoSE, Hanoi Stock Exchange (HNX), and UPCoM) at the end of 2016 as one of the solutions to increase the transparency of banking operations and diversifying goods on the stock market.

Meanwhile, according to the new policy in the Scheme on restructuring the stock and insurance markets by 2020 with vision to 2025 approved by the prime minister in the end of February 2019, by the end of 2020, all commercial banks must list stocks on the stock market.

This means that banks must have their shares listed on the two official stock exchanges including HoSE and HNX and shall no longer register their shares on the UPCoM no later than the end of 2020.

Up to now, among about 40 operating banks, only 18 of them have registered their shares on the stock exchanges. Thus, banks shall not delay their listing as the deadline is approaching.

According to financial analysts, in addition to market factors, the less powerful sanctions are also the reason leading to the delay in listing of banks.

Dr Nguyen Van Thuan, a banking and finance expert said that banks’ listing will not only have a positive impact on share prices, but also on the whole sector and entire stock market, because bank stocks are considered the group of stocks that leads the market.


Category: Finance, Vietnam

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