S. Korea-listed Chinese firms asked to improve transparency
SEOUL-- The Korea Exchange, South Korea's bourse operator, said Wednesday it held a meeting with 14 Chinese companies that are listed on Korean stock markets and asked them to improve transparency in accounting practices.
During the meeting in Shanghai with chief executives of the Chinese firms earlier in the day, the exchange also asked the companies to step up efforts to better communicate with Korean investors.
The firms that are listed on the junior KOSDAQ market include Golden Century, China Hao Ran Recycling and East Asia Holdings Investment.
The meeting came amid lackluster investor sentiment toward Korea-listed Chinese firms, with some Chinese companies being delisted from the Korean stock market after grappling with lower valuations and false financial disclosures.
A total of 22 Chinese companies had been allowed to trade their shares on the Korean stock market since 2007, but seven have been delisted so far.
Investor confidence toward locally listed Chinese shares plunged after China Gaoxian Fibre Fabric Holdings Ltd, a Chinese textile company, was expelled in 2011 just months after being listed on the KOSDAQ over dubious accounting practices.
Source: Yonhap News Agency