Monday, November 26, 2007

Hong Kong, Vietnam stock regulators to ink deal next year

Professor K. C. Chan (C), Secretary for Financial Services and the reasury of the Government of the Hong Kong Special Administrative Region, tours Vietnam’s southern bourse as part of his visit to establish ties between the securities markets of Vietnam and Hong Kong


(SGT-HCMC) Securities regulators of Hong Kong and Vietnam expect to sign a memorandum of understanding (MOU) early next year with the primary goal of enabling Vietnam companies to float shares on Hong Kong’s market.

Vu Bang, chairman of the State Securities Commission, told a press briefing last Friday that the Hochiminh Stock Exchange would submit this plan to the Ministry of Finance before signing the MOU, expected for January next year.

The agreement between the two securities regulators will create a legal foundation for Vietnamese companies to launch initial public offerings in Hong Kong Stock Exchange, he said.

The press briefing was held on the occasion of the visit by Professor K. C. Chan, Secretary for Financial Services and the Treasury of the Government of the Hong Kong Special Administrative Region.

Chan said that his visit’s purpose was to promote mutual understanding between Hong Kong’s financial services sector and Vietnam companies.

Chan highly appreciated Vietnam’s economical growth as well as the development of the financial market, and added Hong Kong could share experiences with Vietnamese companies and banks in this sector.

Ronald Arculli, chairman of Hong Kong Exchanges and Clearing Limited, said that Hong Kong’s securities market in its course of development also had faced a lot of troubles, and the exchange would help the Vietnam market to develop faster by avoiding those mistakes made by Hong Kong in the past.

Chan also said that Hong Kong succeeded to be a fund raising center for Mainland enterprises and it would be capable of providing quality services to Vietnamese enterprises seeking to tap the China market.

Nguyen Ngoc Canh, director of SSC’s International Cooperation Division, said that the commission would have a meeting soon with enterprises, who want to list overseas, to provide information and support them to carry out listing in foreign countries.

As of late October, the market capitalization of Hong Kong had amounted to over US$2,960 billion, the seventh largest in the world and the third largest in Asia.

Earlier, many stock exchanges in the world have shown keen interest in attracting Vietnamese enterprises to list abroad such as Singapore Stock Exchange, Korea Stock Exchange, and London Stock Exchange.