Bursa refutes reports on 'poor quality' Chinese stocks

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.Alibaba.com - The largest database of products & suppliers from China

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.