The Philippine Stock Exchange (PSE) and Vietnam Ho Chi Minh Stock Exchange (HOSE) have signed a memorandum of understanding to enhance their cooperation in financial services.

This MOU responds to the need for stronger global ties at a time of fragile global economies and vulnerable financial markets. It also provides a new opportunity for PSE and HOSE to promote international cooperation to enhance both our securities markets, PSE president and chief executive Francis Lim said in a statement.

PSE chairman Hans Sicat, for his part, added that the MOU would help both exchanges “capture emerging opportunities in Asia.

Both Lim and Sicat consider HOSE as one of the fastest-growing markets in Asia today.

According to Lim, HOSE has about 200 listed companies, with total average value turnover of $100 million and market capitalization of $37 billion. More than 95 percent of its brokers do online trading.

HOSE is definitely overtaking our more than 80-year old exchange. HOSE has only been operational in less than 10 years, but its growth is exponential and enviable. There is political will on the part of both government and HOSE to change old ways and look at the bigger picture in the governance of the market. We can definitely learn much from them, said Lim.

The PSE earlier inked an MOU to create a trading linkage among ASEAN (Association of Southeast Asian Nations) countries that will allow investors to buy or sell ASEAN-listed securities through their local brokers.

Source: Agencies