Chinese firm attempts listing in Korea amid negative investor sentiments
[THE INVESTOR] Despite negative investor sentiments toward Chinese firms, another company from the country is attempting to get listed here, according to industry sources on May 17.
Green Paper Material Holding, a Chinese corrugating medium maker, applied for a preliminary screening to Korea Exchange earlier this week. However, it needs to overcome the deep mistrust toward Chinese firms as quite a few were delisted earlier for fudging accounts and misleading disclosures, the sources said.
“KRX’s strengthened requirements for Chinese companies can be met but the negative market sentiments are something you can’t control,” an industry source said on condition of anonymity.
Although as many as 24 Chinese companies were expected to go public in Korea last year, only one went through with the process. After a five-year hiatus, the Korean stock market saw a total of six listings of Chinese firms in 2016. But last year, Coloray International Investment, a Chinese cosmetics pigment supplier, was the only firm which debuted here as other companies either dropped or delayed their IPO plans.
China Ocean Resources was delisted last year and Wanli International Holdings is set to be kicked out on May 23. Both companies, so-called first-generation Chinese companies who listed before 2009, fabricated disclosures and accounting records.
Meanwhile, the listing of Green Paper Material will mark Mirae Asset Daewoo Securities’ first Chinese IPO advisory in seven years.
By Park Ga-young (firstname.lastname@example.org)