At the start of trading this morning, Sacombank 's STB shares were sold off amid rumors that the bank's leaders were involved in an ongoing economic crime case.
During this morning's trading session, Sacombank's STB shares fell sharply, at one point nearly hitting the floor price. The stock briefly dropped to 29,600 VND, losing almost 5.7% and just a few hundred VND below the floor price. By the end of the morning session, the decline in STB had narrowed to below 3%.
The sharp decline in bank stocks was partly responsible for the market's fall. The VN-Index briefly dropped below 1,270 points, falling more than 10 points in the middle of the morning session.
Sacombank Chairman Duong Cong Minh. Photo: STB
The sell-off of Sacombank's STB stock occurred following last night's social media post claiming that Mr. Duong Cong Minh, Chairman of the Board of Directors of Sacombank, was banned from leaving the country due to his involvement in an ongoing economic crime trial.
This afternoon, Sacombank denied this information. The bank stated that it is taking necessary measures to handle the matter in accordance with the law, as well as to prevent the posting of false, distorted, and defamatory information about Sacombank's leaders.
"Chairman of the Board of Directors Duong Cong Minh is directly managing the affairs at Sacombank," Sacombank's statement read, adding that the bank's operations are normal and ensure the safety of its customers.
Mr. Duong Cong Minh was born in 1960 in Bac Ninh province and holds a Bachelor's degree in Economics from the National Economics University. From 1984 to 1993, he served as an officer at an import-export company under the Ministry of National Defense . From 1994 to 1997, he was the Director of the Thanh Binh Construction Enterprise, also under the Ministry of National Defense. Subsequently, Mr. Minh held leadership positions at Him Lam Joint Stock Company and several other companies.
Prior to joining Sacombank's Board of Directors, Mr. Minh served as Chairman of the Board of Directors of another bank, LienVietPostBank (currently LPBank), for many years. He subsequently divested his entire stake of nearly 15% held by Him Lam in that bank.
At the 2017 annual shareholders' meeting, he was elected Chairman of the Board of Directors of Sacombank. In early 2018, he officially withdrew from Him Lam and three other companies to focus on the restructuring process of the bank.
Minh Son
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