On June 12, Hoa Binh Securities Corporation (HBS) held its annual general meeting where it approved a resolution to sell off stocks from 481 customer trading accounts. This plan has raised significant concerns, prompting the State Securities Commission of Vietnam (UBCKNN) to issue a directive prohibiting the company from liquidating customer assets without proper authorization.
The UBCKNN has made it clear that any actions involving the misuse or unauthorized management of customer accounts and assets will be met with severe penalties. The commission's statement emphasized the necessity for HBS to adhere strictly to legal regulations regarding the management of customer property.
In a detailed report presented during the general meeting, HBS leadership highlighted an internal review revealing a “financial matrix” established by a previous management group. This scheme allegedly operated 23 off-the-books accounts with a staggering cash flow of approximately 13.072 trillion VND (over 550 million USD). The report indicated that this setup aimed to siphon off 9.174 trillion VND in shareholder assets and evade 1.232 trillion VND in state taxes.
Moreover, the report implicated that this group misappropriated 72 billion VND from maintenance funds belonging to hundreds of residents at the Iris Garden project, using it as speculative capital. Given HBS's modest charter capital of only 330 billion VND, these figures are alarming.
The newly elected board of directors expressed that if they do not take immediate action to halt this financial leakage, the company could face bankruptcy and the total loss of shareholder assets. They described the recent turmoil as a “short-term pain” necessary for the long-term survival and transparency of the firm.
Looking ahead, HBS has set conservative business targets for 2026, aiming for revenues exceeding 34 billion VND from various sectors including corporate financial consulting, real estate, and securities brokerage. Additionally, the company is currently under special monitoring on the stock market due to multiple violations of information disclosure regulations and delays in submitting financial reports.
