Some 60 percent of the country’s stock companies have reported accumulated losses from last year and are likely to continue facing losses this year, the Ministry of Finance has announced.
Among 58 out of 94 stock firms, five have now been put under state control and nine have been put under special control, according to the Ministry, news website thoibaokinhtesaigon reported
In a recent report sent to the Ministry of Finance, the State Securities Commission said last year it had decided to withdraw professional stockbrokers from six companies, rescind the proprietary trading operations rights from two companies, suspend the underwriting business at four companies and withdraw the professional stock investment consultant at one firm.
It also approved the merger of two firms, dissolved three and withdrew the certificates of two others.
So far 15 stock companies in Vietnam have stopped operating since the country established its stock market in 1998 and the number is expected to increase this year, said the Ministry.
The State Securities Commission said it will create good conditions and issue clear guidance so that stock firms can boost their restructuring process via mergers.
It also required that from this year local stock firms will have to submit reports on their finances two times per month instead of one time as before.
Since last year, 66 inspections of operations at stock companies have been conducted and 102 administrative sanctions have been issued with total fines worth more than VND7.7 billion (US$365,981)
Most of the infringements found were breaches of reporting obligations, information announcements, management and restoring documents.
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