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Vietnam’s HOSE joins Asean bourse alliance

09/16/2009

Five Association of Southeast Asian Nations (Asean) stock exchanges, Bursa Malaysia, the Indonesia Stock Exchange, the Philippine Stock Exchange (PSE), Singapore Exchange Ltd. (SGX) and the Stock Exchange of Thailand, entered into an accession agreement with the Hochiminh Stock Exchange (HOSE) yesterday that will include the latter in a regional pact which will explore cross-border trading among the Asean capital markets via an electronic gateway.

The signing of the agreement took place at the 9th Asean Exchanges CEOs Meeting in Kuala Lumpur of which Bursa Malaysia is the host.

This agreement followed a memorandum of understanding (MoU) which was signed in Bangkok by the original five exchanges, excluding Hochiminh Stock Exchange, in February this year. This regional cooperation, which is considering an electronic linkage between participating markets via a single access point, aims to assist the Asean region to upgrade its capital markets in order to stay competitive. This initiative aims to establish an Asean Bulletin Board, which will display market data of participating exchanges and enable each exchange to feature stocks from its respective market.

PSE president Francis Lim said the entry of HOSE to the Asean Exchanges alliance is a big step toward achieving capital market development in the Asean.

"With this formal accession of HOSE, which is one of the fastest growing markets in Asia, the benefits that each exchange is hoping to reap from the Asean trading linkage have been enhanced. The PSE looks forward to closely working with the HOSE on developing deeper financial markets and free flow of capital in the Asean," he added.

According to Bursa Malaysia’s chief executive officer, Dato’ Yusli Mohamed Yusoff, the inclusion of the Hochiminh Stock Exchange in the regional alliance further affirms the prospect and viability of this initiative which will connect the Asean markets electronically and more efficiently.

"As the host of the 9th Asean Exchanges CEOs Meeting and on behalf of all five original Asean exchanges, Bursa Malaysia welcomes the participation of Hochiminh Stock Exchange into this regional collaboration which will offer a more competitive and facilitative Asean platform for global investors. Bursa Malaysia and the member exchanges share the view of reaping long term value in such strategic collaboration as it will elevate the Asean Exchanges as a group by combining the respective markets’ economic and financial strengths," Dato’ Yusli added.

Phan Thi Tuong Tam, Senior Deputy CEO of Hochiminh Stock Exchange, said HOSE has been standing side by side with the Asean exchanges for nearly two years since the Asean Link project was initiated by the Asean countries.

"We have always expressed our desire and willingness to join the linkage, and today, by signing this MoU, Hochiminh Stock Exchange would like to commit ourselves more deeply and comprehensively to this project. Each Asean exchange has its own particular strength and through the linkage, they will have good opportunities to develop such strengths as well as utilize their advantages in the area by creating the common, unique, firm and well-diversified image of Asean," he said.