HOSE is the abbreviation for the Ho Chi Minh City Stock Exchange. So, what are the functions and objectives of HOSE, and what are the regulations regarding its operations and trading principles? In the article below, Tipstrade.org will provide a full and detailed introduction to everything investors need to know when trading on HOSE!
What is HOSE?
Introduction to HOSE
The HOSE exchange, also known as the Ho Chi Minh City Stock Exchange – HOSE, is the abbreviation of the English term “Hochiminh Stock Exchange.” The exchange officially commenced operations in July 2000 under the supervision of the State Securities Commission. The stock price index traded on HOSE is the VN-Index.
As of today, HOSE is the largest stock exchange in the Vietnamese market. Its charter capital at the time of establishment was VND 1,000 billion. This is where eligible companies list their securities and distribute them to the market. In other words, it serves as an intermediary that helps businesses access and raise capital in the secondary market.
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Where is the HOSE stock exchange located?
The head office of HOSE stock exchange is currently located at No. 16, Vo Van Kiet, District 1, Ho Chi Minh City. Some other contact information:
- Website: https://hsx.vn/
- Phone: (84.28) 3821 7713 or 3821 7712
- Fax: (84.28) 3821 7452
- Email: hotline@hsx.vn.
Functions of the HOSE Exchange
The HOSE exchange serves several key functions:
- HOSE operates as a secondary market for issuing existing bonds. Its presence has significantly influenced the capital market by providing and distributing securities to brokers and member firms.
- All securities listed by Vietnamese enterprises on HOSE are denominated in VND. The exchange also has the authority to issue listing licenses and operating licenses for securities companies.
- HOSE provides the platform for order placement and order matching in the market, with a capacity of up to 300,000 matched orders per day.
- It is also where investors can access real-time price board updates reflecting intraday market movements.
Goal of the HOSE Exchange
Accordingly, its operations must ensure the following goals:
- Ensuring that securities activities are organized in a stable, seamless, and secure manner.
- Enhancing the quality of listed products on the exchange.
- Promoting corporate governance practices among listed companies.
- Improving the quality of supervision.
- Strengthening the use of information technology in supervision and data standardization.
Trading hours on the HOSE stock exchange
After understanding what HOSE is, along with its functions and objectives, let’s explore the exact trading hours of the HOSE exchange to help you conveniently monitor your investments.
What time does HOSE open/close?
- Opening time: 09:00 AM
- Lunch break: 11:30 AM – 1:00 PM
- Closing time: 03:00 PM
Trading hours for different order types on HOSE
For stocks, ETFs and closed-end fund certificates:
| Time | Trading Session |
| 09:00 – 09:15 | Opening session and periodic order matching |
| 09:15 – 11:30 | Negotiated trading and continuous order matching |
| 11:30 – 13:00 | Mid-session break |
| 13:00 – 14:30 | Negotiated trading and continuous order matching |
| 14:30 – 14:45 | Negotiated trading and closing periodic matching |
| 14:45 – 15:00 | Negotiated trading |
For bonds:
| Time | Trading Session |
| 09:00 – 11:30 | Negotiated trading |
| 11:30 – 13:00 | Mid-session break |
| 13:00 – 15:00 | Negotiated trading |
Which days does HOSE operate?
HOSE operates as a state-run institution; therefore, it is only open from Monday to Friday. On Saturdays, Sundays, and public holidays/Tet as regulated by the government, the exchange is closed for trading.
Regulations and trading principles on the HOSE exchange that investors should know
Many investors, especially beginners, may wonder about the regulations on the Ho Chi Minh City Stock Exchange. Accordingly, investors must strictly adhere to the rules set by the exchange for each trading activity, as follows:
HOSE price fluctuation range
On the Ho Chi Minh City Stock Exchange, the price fluctuation limit for fund certificates and stocks (not applicable to bonds) is ±7%. Specifically:
- Ceiling price: Calculated as Reference Price × (1 + fluctuation range)
- Floor price: Calculated as Reference Price × (1 – fluctuation range)
- Reference price: The closing price from the most recent trading session.
For newly listed stocks, the reference price on the first trading day is the indicative price proposed by the listing company and the advisory firm. The price fluctuation range on the first day may be ±20%. From subsequent sessions, HOSE stock prices and daily limits are determined similarly. HOSE price boards are continuously updated and publicly available.
Trading volume on HOSE
Previously, the minimum trading volume per order on the Ho Chi Minh City Stock Exchange was 100 shares, and order quantities had to be multiples of 100.
However, since September 12, 2022, based on new regulations, investors may now trade odd lots (1–99 shares) on HOSE.
Order matching methods
When trading on the Ho Chi Minh City Stock Exchange, investors have three order-matching options:
- Periodic order matching: Used to determine the opening price (ATO) and closing price (ATC). Orders placed during this session cannot be modified or canceled.
- Continuous order matching: Once an order is entered into the system, it is matched continuously without waiting for a specific time window.
- Negotiated trading (Put-through orders): Buyers and sellers negotiate directly and report the results to the securities company, which updates the system based on the agreed price.
Order matching principles on HOSE
HOSE applies two key principles:
- Price priority: Sell orders with lower prices and buy orders with higher prices are given priority.
- Time priority: If orders have the same price, the one entered earlier is executed first.
Order cancellation rules
For periodic matching sessions (ATO and ATC), investors are not allowed to cancel orders. All other orders may be canceled as long as they have not been executed.
Settlement time on HOSE
After buy/sell orders are executed, settlement occurs according to the following schedule:
- For order matching and negotiated transactions: Settlement occurs T+2, meaning 2 business days after the order date.
- For bond transactions: Also T+2.
Types of orders on HOSE
Investors on the Ho Chi Minh City Stock Exchange may use various order types, including:
- LO Order (Limit Order): A buy or sell order at a specific price or better.
=> Limitation: The order may not be executed if the market price does not reach the specified limit.
- ATO Order (At-the-Open): Buy or sell at the opening price. Valid only during the opening periodic session (09:00–09:15) and canceled if unmatched. Helps investors participate in the opening session at a market-driven price.
- ATC Order (At-the-Close): Buy or sell at the closing price. Valid only during the closing periodic session (14:30–14:45) and canceled if unmatched. Helps investors join the closing session at the market-defined price.
- MP Order (Market Price Order): Buy or sell at the best available market price. Valid only during continuous matching and executed immediately. Ensures fast execution but the transaction price may fluctuate sharply.
What are the requirements for companies to be listed on HOSE?
– Charter capital: At the time of registration, the company must have a charter capital of VND 120 billion or more, based on audited financial statements.
– Operational history and performance conditions:
- The company must have operated for at least 2 years as a joint-stock company.
- The company must have reported profits in the two consecutive years prior to the listing application.
- The Return on Equity (ROE) at the most recent period up to the registration date must be at least 5%.
- The company must have no overdue debts over 1 year as of the listing registration date.
- The company must not have accumulated losses at the time of registration.
– Shareholder structure:
- At least 20% of voting shares must be held by a minimum of 300 non-major shareholders.
– Other listing requirements:
- Major shareholders, as well as individual or institutional shareholders, must commit to holding 100% of their shares during the first 6 months and 50% of their shares during the next 6 months, except for shares owned by the state.
- The company’s shares must have been traded on UPCOM for at least 2 years, except for companies that are newly listed via public offering or privatized joint-stock companies.
- The listing application dossier must comply with the regulations of the Ho Chi Minh City Stock Exchange.
How to open a stock trading account on HOSE
Investors can register to open a trading account on the Ho Chi Minh City Stock Exchange in two ways: online or in person.
Register online on HOSE
First, investors visit the website or download the app of a member securities company of the Ho Chi Minh City Stock Exchange. Next, select the account registration section and follow the instructions. Finally, carefully read the contract, print it, and submit it to the securities company.
In-person registration at HOSE member brokerage firms
Investors can go directly to the offices of securities companies that are members of the Ho Chi Minh City Stock Exchange to register an account. Each company may require different documents, so to save time, investors should prepare in advance. At a minimum, investors need to have their citizen ID card (CCCD), a bank account, and the securities contract.
Conclusion
In summary, the article above has provided readers with comprehensive information about the HOSE exchange, its operations, and the key principles investors need to know. HOSE is a transparent and secure stock exchange with many potential stocks, making it ideal for new investors looking to explore the market. Visit Tipstrade.org to access more useful knowledge and insights about the stock market!
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