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ROK exchange to see 1st overseas debut from China

(Xinhua)
Updated: 2007-05-20 08:42

Hong Kong-listed fabric maker Huafeng Textile International Group is expected to become the first non-Korean company to list on the exchange of Republic of Korea (ROK) in June this year.

Huafeng is the first "overseas" company to apply for a listing on the Korea Exchange, said Ma Linjiang, principal of the Beijing law firm which is handling the deal.

"If Huafeng Textile succeeds in listing, we expect more overseas and Chinese companies will follow suit," said Lee Young Tak, chief executive of the exchange.

The Chinese company hired ROK's Daewoo Securities Co in 2006 to help it submit a listing application to the exchange.

"Listing costs are lower in the ROK than in other countries," said lawyer Ma Lijiang. "Not only that, the Korea Exchange is vigorous and sets a low threshold for companies to trade shares," he added.

Established in southeast China's Fujian Province in 1988, Huafeng reported 586 million yuan of sales in 2006, up 13 percent on the previous year. The company listed on the Hong Kong Stock Exchange in 2002.

The Korea Exchange now ranks sixth in Asia in terms of market value after being overtaken by counterparts in China and India last year.