As exchanges jockey to attract Chinese companies, NYSE chief says there's no substitute for size and high standards
The New York Stock Exchange (NYSE) may be rattled by its main European competitor in the race to secure China listings but the message recently delivered to mainland firms is that size matters in capital markets while no compromise can be made on disclosure standards.
London is a cheaper and easier destination for mainland firms that wish to list, but New York has no intention of lowering its regulatory standards to attract them, according to NYSE president and co-chief operating officer Catherine Kinney.
'London Stock Exchange has been marketing itself as a place with lower governance standards but I don't think it is effective or helpful for China. It is important for mainland companies to comply with higher governance and disclosure standards,' Ms Kinney said.
London has made inroads into the near duopoly run by Hong Kong and New York in securing offshore listings by major mainland firms as the companies blanch from increased compliance costs and risks from shareholder litigation.
'I do not think the London Stock Exchange operates the same quality of market or value of liquidity as the New York Stock Exchange,' she said.
'Having 2,770 listed companies with a market capitalisation of US$20 trillion, the New York Stock Exchange is the largest market worldwide. Chinese companies listing in the US can expose themselves to the broadest pool of investors with the best liquidity.'
