Visitors monitor stock prices at a private stock market gallery in Kuala Lumpur, Malaysia in this file photo taken in 2008. [Photo/icpress.cn]

Chinese companies are struggling to raise their profiles as investors are wary of unfamiliar names, Elaine Tan reports from Kuala Lumpur

When Xingquan International Sports Holdings Ltd sought a listing on Bursa Malaysia - the Malaysian stock exchange - it was welcomed with open arms.

The 2009 initial public offering of China's fifth-largest outdoor sportswear manufacturer was the first by a foreign company after a concerted 16-month effort by the local Securities Commission and the stock exchange to internationalize Malaysia's capital market.

The Fujian-based company's July debut was followed closely by Multi Sports Holdings Ltd, a firm that designs, develops and makes shoe soles, which was listed in August. Three months later, sports shoe and sportswear manufacturer XiDeLang Holdings Ltd also had its IPO.

Hopes were high that the arrival of these Chinese companies would improve the efficiency of the Malaysian capital market, add depth and breadth to the exchange, and pave the way for local investors to access stocks from the world's most dynamic economy. Bursa Malaysia, a latecomer to the game, would finally catch up with the likes of Singapore, New York and London in courting cross-border listings from the economic superpower.

Meanwhile, Chinese companies were able to access funds much faster than on home ground, where a massive backlog could delay listing aspirations and intensify competition for investment dollars.

Xingquan International said it had decided on a Bursa Malaysia listing because of the encouraging support from Malaysian authorities, and local financial institutions and funds.

"We explored several options back in 2008 and found the Malaysian market to be most suitable for us," said Wu Qingquan, Xingquan International's executive chairman and chief executive officer.

But the rosy picture has not panned out exactly as planned.