Thursday, August 16, 2018 12:22:02 AM - Markets open
VN-INDEX 961.37 -16.90/-1.73%
HNX-INDEX 108.02 -1.77/-1.61%
UPCOM-INDEX 51.38 -0.30/-0.59%
Foreign cap to be focused at annual shareholder meetings
Source: VNS - 4/13/2017 10:24:49 AM
 (0 ratings. You must sign in to rate.)
A number of listed companies--especially those whose capital structures have run out of space for foreign investment--will discuss raising foreign ownership at their coming annual shareholder meetings.

According to the HCM and Hà Nội Stock Exchange, there are 30 companies that cannot receive additional foreign investment.

Some of these companies are operating in the sectors involved in national security such as banking and property, while some can only lift the limit of foreign ownership on approval of their major shareholders.

Additional foreign ownership has remained a big challenge for listed companies in Vietnamese stock market.

Recently, the construction giant Coteccons postponed its annual shareholder meeting, which was scheduled on April 13, as the company wanted to ask its shareholders to approve the plan to raise the limit of foreign ownership in the company to 60 per cent from 49 per cent.

The company’s shares are an attractive target for both domestic and foreign investors, as the construction firm boasts a high growth rate and constant market growth.

In addition, Hòa Bình Construction & Real Estate Corporation on April 26 will hold its annual shareholder meeting to discuss business strategies for 2017 and ask the shareholders to approve the lifting of foreign ownership in the firm.

Other companies that will do the same include Bình Minh Plastic, HCM City Securities, DHG Pharmacy Company and insurance-finance firm PVI Holdings.

Of the four companies, Bình Minh Plastic and HCM City Securities will be the two companies that attract the most attention when they bring the topic of foreign investment to their annual shareholder meeting.

According to the management board of HCM City Securities, raising the limit of foreign ownership would help the company increase share trading liquidity, raise more capital and receive more support from foreign shareholders.

In the case of Bình Minh Plastic, foreign investors hold 49 per cent of the firm’s capital. The company has run out of space for more foreign investment and has drawn high attention from some foreign companies such as the Thailand-based Siam Cement Group (SCG) and the plastic sector itself often has big M&A deals with top plastic corporations trying to acquire local companies in order to enter the domestic markets.

The issue of raising foreign investment has remained a difficult challenge for both listed companies and market regulators after the finance ministry in June 2015 decided to allow listed firms to lift the limit of foreign investment, depending on the sectors that the companies are operating in.

Raising foreign ownership in listed companies is also one of the decisive factors that Việt Nam needs to take into consideration if it wants to promote its stock market from the level of a frontier market to the level of an emerging market in order to attract higher foreign investment.

Newer News
07/07 Hà Nội condo market slows in Q2
16/05 Hà Nội to crackdown on delayed projects
09/05 Fallow projects amidst land plot fever
02/04 Banks begin tightening screws on property credit
27/03 Hanoi earns 349 million USD from land auctions
14/03 Property market expected to be stable in 2018
26/02 Vietnam’s property market expected to grow
06/02 Property market attracts 77.6 million USD in FDI in January
05/02 Market records more property sales in January
19/12 Hà Nội prepares land for developing resettlement apartments
Older News
23/03 Mapletree openes its first office development in Vietnam
20/03 Price up for high-end property
07/03 Real estate transactions stall in February
01/03 City aims for high-quality low-cost housing
27/02 Property stockpile 77% below peak
15/02 Vietnam’s building code in a "messy" situation
13/02 Ha Noi office and retailHa Noi office and retail competition heating up
13/02 HCM City aims for sustainable realty market
09/02 HN to collect VNĐ10 trillion from auctioning land
06/02 Realty market outlook gloomy
 
Newsletter Signup
Top Stories
VN manufacturing PMI hits 22-month high in March
CPI goes up 4.96 percent year-on-year in first quarter
Slight rise in February CPI
Draft decree on State monopoly in trade submitted to Government
CPI ups 0.46% in January
Market Update
Last updated at 3:10:24 PM
VN-INDEX 961.37 -16.90/-1.73%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.