What is determination of ceiling price, floor price and price fluctuation range at the Ho Chi Minh City Stock Exchange in Vietnam?

What is determination of ceiling price, floor price and price fluctuation range at the Ho Chi Minh City Stock Exchange in Vietnam?

In Article 9 of the Securities Trading Regulations at the Ho Chi Minh City Stock Exchange issued with Decision 352/QD-SGDHCM in 2021, there are regulations on determination of ceiling price, floor price and price fluctuation range at the Ho Chi Minh City Stock Exchange are as follows:

1. The ceiling/floor price on the trading day of stocks, closed-end fund certificates, ETF certificates and warrants is calculated according to the provisions of Clauses 2 and 3 of this Article and rounded down for the ceiling price, making Round up for floor price per quote unit. There is no limit on price ceiling, floor price in the day for bond trading.

2. The ceiling/floor price on the trading day of stocks, closed-end fund certificates, and ETF fund certificates is determined as follows:

Ceiling price = Reference price + (Reference price x Ceiling price range)

Floor price = Reference price - (Reference price x Floor price fluctuation range).

3. The ceiling/floor price on the first trading day and regular trading day of warrants purchased based on the underlying stock is determined as follows:

Ceiling price = Warrant reference price + (base price ceiling - underlying stock reference price) x 1/Conversion rate

Floor price = Warrant reference price - (reference price of the underlying stock - floor price of the underlying stock) x 1/Conversion rate

In case the floor price of the warrant is less than or equal to zero (0), the floor price will be the smallest quoted unit equal to 10 VND.

4. In case the ceiling price or floor price of stocks, closed-end fund certificates or ETF certificates determined under Clause 2 of this Article is equal to the reference price, the ceiling price and floor price will be adjusted as follows:

Adjusted ceiling price = Reference price + one quote unit

Adjusted floor price = Reference price - one quote unit.

5. In case the adjusted floor price specified in Clause 4 of this Article is less than or equal to zero (0), the floor price will be adjusted equal to the reference price.

6. Price fluctuation range (including ceiling price fluctuation range and floor price fluctuation range) during the trading day in Clause 2 of this Article for stocks, closed-end fund certificates, and ETF certificates are regulated. is + 7% of the reference price.

7. The price fluctuation range specified in Clause 6 of this Article does not apply to some of the following cases:

a) First trading day of newly listed shares, closed-end fund certificates and ETF certificates;

b) The first day that stocks, closed-end fund certificates, ETF certificates can be traded again after being suspended from trading for more than twenty-five (25) days.

What is determination of reference price at the Ho Chi Minh City Stock Exchange in Vietnam?

In Clause 1, Clause 2, Clause 3, Article 10 of the Securities Trading Regulations at the Ho Chi Minh City Stock Exchange issued with Decision 352/QD-SGDHCM in 2021, there are regulations on determination of reference price at the Ho Chi Minh City Stock Exchange as follows:

1. The reference price of stocks, closed-end fund certificates, ETF certificates and warrants being traded is the closing price of the previous most recent trading day.

2. In case new shares, closed-end fund certificates, ETF certificates, warrants are listed, on the first trading day, the reference price is determined according to Article 11 of this Regulation.

3. In case of trading stocks, closed-end fund certificates, ETF certificates not entitled to dividends or attached rights, the reference price at the ex-rights date is determined according to the principle of taking the closing price of the most recent trading day adjusted for the value of dividends received or the value of accompanying rights.

In what cases does the Ho Chi Minh City Stock Exchange not adjust reference prices in Vietnam? 

In Clause 4, Clause 5, Clause 6, Article 10 of the Securities Trading Regulations at the Ho Chi Minh City Stock Exchange issued with Decision 352/QD-SGDHCM in 2021, there are regulations on cases of the Ho Chi Minh City Securities Exchange does not adjust the reference price as follows:

4. The Stock Exchange shall not adjust the reference price in the following cases:

a) Issuing additional shares or closed-end fund certificates at an issuance price greater than or equal to the closing price of the shares or closed-end fund certificates before the ex-rights date after adjusting other rights (if any).

b) Issuing convertible bonds (including issuance to existing shareholders), issuing private securities, offering securities to investors other than existing shareholders, issuing shares under the stock option program options for employees in the company, issuing additional shares according to swap plans from merger transactions, paying dividends/bonuses in treasury shares to existing shareholders, offering treasury shares to shareholders existing and other issuance cases do not affect the rights of existing shareholders.

c) Listed organizations reduce charter capital.

5. In case of stock split or consolidation, the reference price at the return transaction date is determined according to the principle of taking the closing price of the trading day before the split or consolidation date and adjusted according to the ratio of stock split and consolidation.

6. In some necessary cases, the Stock Exchange may apply other methods of determining reference prices after obtaining approval from the State Securities Commission.

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