- BURSA Malaysia Bhd (1818) said the perception that Chinese companies list their shares in Malaysia because they cannot do it in other countries, is inaccurate.
"Hence, it is unfortunate that there has been a fair amount of stereotyping of Chinese companies as lacking quality based on the perception of what happened in other parts of the region," Bursa chief Datuk Yusli Mohamed Yusoff said in a statement.
Bursa was responding to recent media articles that said foreign listings, which have been from China, were of "poor" quality.
Yusli said the resilience of Malaysia's stock market and fair market valuations have been key factors that attracted the Chinese firms to pick Malaysia as a fund-raising destination.
"The government's pro-business stance, its enhanced ties and cordial relationship with China has also helped to provide confidence to these Chinese companies and profile Malaysian capital market in the international stage," he noted.
Bursa reiterated that the listing framework requires advisers to carry out rigorous due diligence exercises including corporate governance assessments.
Hence, investor protection remains the top driving factor that promotes a high level of corporate governance standard among public listed companies in Malaysia.
"In our pursuit to make Malaysia attractive as an international listing and investment destination for local and international investors, we emphasise greatly on our key strength of providing high standards of investor protection as it underpins the quality and strength of a market," Yusli said.
Yes, I would be agree that it is wrong to discriminate these local listed Chinese stock without proper reasoning.
As it is, the stocks are newly listed and it's rather unfair to judge them now.
However, for Yusli's sake, I do hope these Chinese stocks do deliver. If they start loosing money within a year or two after listing or if their earnings deteriorates after listing, then many issues would be raised.
This Yusli bugger is deluded. He's so hung up about increasing the trading velocity in Bursa (= more income, meet KPI, higher bonuses, keep his job) that he's willing to open up the exchange to dubious listings.
ReplyDeleteIf a Chinese stock is "good quality", do you think they'll list in a market where there is little foreign interest? Won't they do better in HK?
Sheesh. Everyone's a sales man. Reminds me of a saying : "Trust me, we're from marketing. We're here to help.".
A major selling point for listing here is that the punishments are lighter. RM350k for producing false accounts.
ReplyDeleteI guess I would increase the liquity of stock trading if I am Dato Yus too, Richard. What else you could do with too many "politicians" around?
ReplyDeleteAs for Chinese stocks are dubious listing, I think they are not. Just that they are not from the hot industries like O&G or financials. It bored the investors. Furthermore, Uncle Quek also once the major shareholder of the listed firms, i doubt he is doing national duties right?
Anyhow, I like your 6-2 winning phrase " TRust me, we're from marketing. We're here to help." Give Dato Yus some time, just like we give some to Wenger.