Investor rights when HBCHNG shares are about to be delisted

In the coming time, many famous stocks are about to be delisted. Accordingly, more than 347.2 million HBC shares of Hoa Binh Construction Group Joint Stock Company will be delisted from September 6. Similarly, more than 1.1 billion HNG shares of Hoang Anh Gia Lai International Agriculture Joint Stock Company will also be delisted on HoSE at the same time.

The cause of these two cases is due to poor business results in recent years. For HBC, the accumulated loss by the end of 2023 was VND 3,240 billion, exceeding the company's actual contributed charter capital of VND 2,741 billion. Meanwhile, HNG has been operating at a loss for three consecutive years with after-tax profits of the parent company's shareholders in 2021, 2022 and 2023 being negative at over VND 1,119 billion, VND 3,576 billion and VND 1,098 billion, respectively.

Hoa Binh said that during the process of transferring floors and after listing on UpCOM, the company is committed to continuing to strictly implement its obligation to disclose information according to regulations, ensuring transparency and protecting the rights of shareholders and investors. Meanwhile, HNG believes that the company will generate profits in the following years, thereby gradually reducing accumulated losses on financial statements in the shortest time.

HBC shares were continuously sold off after the above information. In today's session alone, HBC code hit the floor at 4,630 VND, down nearly 21% after a month. In contrast, HNG shares increased by 1.47% today to 4,140 VND, maintaining the price range of 4,000 - 5,000 VND/share from the end of 2022 until now.

Holding stocks, many investors are confused in this transition period. According to regulations, stocks that are delisted from HOSE and HNX but still meet the conditions of being a public company will be transferred to UPCOM to continue trading and maintain liquidity . Previously, many stocks that were delisted from HoSE were also transferred to trade on this market. It should be noted that liquidity may be low because the stock value has decreased.

However, with stocks that are delisted but not transferred to another exchange, investors will have difficulty transferring their shares. In this case, investors should contact the company to request a shareholder book and review the company's stock buyback policies, if any. The fact that a stock is delisted from the exchange does not mean that investors will lose the money they invested, and their ownership rights will not change.

Experts say that to protect themselves, investors should not buy stocks of inefficient, non-transparent businesses that show signs of price manipulation or are under control...