The Hanoi Stock Exchange (HNX) has plans to launch the HNX30 Index into operation in this quarter to meet increasing demands of investors and the market.

Like the VN30 Index for the southern bourse, the HNX30 Index will track the movements of the 30 leading shares by market capitalization and liquidity. Its calculation methods rely on the free float rate, meaning shares that are freely transferable, and liquidity factors, or the amount of shares traded per day.

Enterprises chosen in the basket are those meeting standards of liquidity and listing scale. They are not under supervision, warning or restricted trading on the exchange.

According to a representative of HNX, the new benchmark will help develop index-based trading products such as ETF (ended trust fund) and stock index futures contract. HNX has completed operation conditions for the index so far.

The HNX30 Index will be put under a management committee with independent experts and the HNX. Stock selection and capitalization ratio will be revised every six months.

HNX also expects to build up HNX50 Index and other market indices in the coming time.

The Saigon Times Daily