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Nasdaq expects representative office in Beijing

(Xinhua)
Updated: 2007-05-28 09:44

Nasdaq is working closely with the Chinese authorities to open a representative office inBeijing, said Nasdaq's chief representative of China Xu Guangxun Sunday.

Nasdaq will maintain its dynamics on listing Chinese firms and fears no competition, Xu said but declined to give a forecast on how many new Chinese listings would take place on the Nasdaq this year.

"China is Nasdaq's fastest growing market outside of the U.S. We are optimistic about the companies in the pipeline in the coming months." Xu told Xinhua, "and we welcome competition from international stock exchanges in terms of seeking potential Chinese companies."

Related readings:  Foreign exchanges allowed to set up rep offices  China to become Nasdaq's biggest overseas market  NASDAQ to launch China Index World stock exchanges go hunting in China

Stock exchanges from Britain, Germany, the Republic of Korea, Singapore and other countries have been hunting for Chinese companies and some put forward preferential policies including cutting listing cost.

"Companies listed in Nasdaq can acquire more publicity and the market has more liquidity and more open investors who have the culture to take more risks," Xu said, adding that Chinese companies are getting used to the U.S. requirements for listed companies.

"For example, Chinese firms listed in Nasdaq is doing better in information release," Xu said, "more and more firms realize that apart from financing, mature and stricter regulations can help them grow stronger."

Lawyers representing planned Chinese listings said there was a growing feeling that the Sarbanes-Oxley Act of 2002, which introduced strict regulations in the wake of corporate scandals, is not an insurmountable obstacle to share sales in the U.S.

"Concerns about Sarbox have now been fading," Xu said, "We're optimistic that we'll be able to move forward relatively quickly."