Hochiminh Stock Exchange to launch Covered Warrant as its newest product

The Launching Ceremony of Covered Warrant (CW) as the latest instrument of Vietnam capital market has been seen in HOSE today.

The event was honored to welcome leaders of the Ministry of Finance (MoF), the State Securities Commission, Vietnam Securities Depository, Hanoi Stock Exchange, representatives from securities firms, listed companies, local press, and media agencies.

Covered warrants, issued by securities companies, were listed on HOSE with a similar trading method as common stocks. In the first stage, HOSE only allows the listing and trading of European style call CW. Currently, there will be 10 CW codes from 7 issuers that are listed for trading, with a total listed volume of 21.9 million CW.

Speaking at the ceremony, Mr. Huynh Quang Hai, Deputy Minister of Finance congratulated HOSE for its first trading session of CW and highly appreciated the positive efforts of HOSE and other related agencies throughout the time. They have strived to actively prepare the necessary conditions for the birth of CW. The leader of MoF also emphasized that more attention should be given, particularly in the operating and supervising the market in order not only to ensure the safety and stability of the market but to guarantee the legitimate rights and interests of securities market participants and investors.

Mr. Tran Van Dung, Chairman of the State Securities Commission, acknowledged the Government and the MoF for paying special attention and support to the process of preparing conditions for the launch of Covered Warrant. He hopes that CW will be positively received by both domestic and foreign investors, thereby attracting more foreign capital to the market as well as improving the market liquidity.

Mr. Le Hai Tra, Acting Chairman of HOSE, affirmed that the launch of Covered Warrant is an important milestone not only to the development of HOSE but also to the overall securities market. Besides, he highlighted the introduction of CW to the securities market is a great achievement of all the securities market participants as well as HOSE.

With the role of organizing and operating the market, HOSE will ensure the stability and efficiency in the operation of CW.

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