While Bursa Malaysia has been aggressive in pursuing foreign listings, the group’s chief executive officer Datuk Yusli Mohamed Yusoff insists that they will not compromise on the quality of companies, out of desperation. He said, “Our objective remains to have quality companies listed on our bourse and that is in our long-term interest.”
He stressed that the same standards of governance and disclosures applies to China. This was in response to the negative perception Malaysian investors had on China listings.
This may have been fueled by the failure of several China companies listed on the Singapore Exchange since late 2008. Also three China companies currently listed on Bursa Malaysia are trading below their IPO prices.
However, Yusli advised investors not be so quick to stereotype Chinese companies and to perform their own due diligence on the companies they want to invest in. China companies too should be more pro-active in their investor relations to gain consumer confidence.
Yusli pointed that buying Chinese stocks listed on Bursa Malaysia is advantageous compared to those listed on foreign exchanges, such as Hong Kong or the Singapore Exchange. One could avoid foreign currency exposure risk because investments are in ringgit. Also there would be no brokerage fees to foreign brokers. In addition, China companies listed on Bursa would have gone through rigorous regulatory processes, thereby giving added security to local investors.
In closing, Yusli hopes that Malaysia could gain a good reputation as a listing destination among Chinese-based entrepreneurs.
Tags: bursa malaysia quality companies, china listings on bursa malaysia