Friday, August 6, 2010

Bursa may see 2 more China firms listed by year-end

KUALA LUMPUR: The local bourse is expected to see the listing of two more Chinese companies by year-end boosted by Malaysia's newly-confirmed status as a Qualified Domestic Institutional Investors (QDII) investment scheme destination by the Chinese regulators, said Securities Commission (SC) chairman Tan Sri Zarinah Anwar.

According to Bernama, Zarinah said the SC had received a lot of interest from Chinese companies seeking listing on Bursa Securities.

In her keynote address at the Capital Market Forum 2010 here yesterday to explore business opportunities between the two countries, Zarinah said Malaysia's recognition as a QDII destination by the China Securities Regulatory Commission (CSRC) may boost the relatively low levels of cross-border investment between the capital markets.

'We hope that this new phase in the development of the relationship between our two markets will see greater interest from Chinese companies seeking to raise funds in the Malaysian market, complemented by deeper and more sustained interest in Chinese companies by Malaysian investors,' she said.

The liberalisation of Malaysian equity guidelines two years ago had seen the listing of four Chinese companies on the local bourse, she said. The four are K-Star Sports Ltd, Multi Sports Holdings Ltd, Xidelang Holdings Ltd and Xingquan International Sports Holdings Ltd.

In her speech, Zarinah recapped the SC's signing of a Letter of Exchange with the CSRC in late June 2010 recognising Malaysia as the 11th member of a 'small group of approved investment destinations' by both the CSRC and China Banking Regulatory Commission (CBRC).

She said the recognition would 'facilitate the pooling by fund managers, securities firms and financial institutions, of funds from domestic investors in China for investment in Malaysia securities".

The other jurisdictions are Australia, Canada, Hong Kong, Germany, Japan, Luxembourg, Singapore, South Korea, the United Kingdom and the United States.

'In addition, the rebound in the world capital markets has resulted in a new wave of QDII funds being offered to the Chinese market,' she said.

Zarinah said Malaysia's exports to China in the first five months of the year had risen 82.2% to US$19.1 billion (RM60.4 billion) from the same period last year, making China Malaysia's largest trading partner.

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