NYSE looks to woo Asian firms

John Thain visits region to convince companies that the tough compliance rules are worth it

The New York Stock Exchange is on a charm offensive in Asia this week as it looks to expand its business in the emerging markets of India and China.

To succeed, chief executive John Thain must persuade unlisted companies that the benefits of a Big Apple listing outweigh the hassles of jumping through American compliance hoops.

He will not have been helped by the comments of Securities and Exchange Commission chairman Christopher Cox, who said on Sunday that China Construction Bank did not opt for a New York listing because it could not meet the exchange's regulatory requirements.

Mr Cox's comments rankled Asian counterparts such as Hong Kong Exchanges and Clearing chairman Charles Lee Yeh-kwong, who fired back that US litigation culture and the high regulatory costs were turning mainland firms away from the US markets.

Ahead of his trip Mr Thain moved to downplay Sino-US business exacerbated by thorny trade issues and national security concerns after CNOOC's ill-fated attempt to take over California's Unocal Corp.

'In general the US is open to mergers and acquisitions by international companies, and I think we should be,' he said. 'Recent events do not set a good example for the trade and for the open market. I would hope that this does not discourage companies from listing here, and in fact I think that that's the exception and not the rule.'