English

27 May 2017

MARKET AND REGULATORY UPDATE

MIDS RESEARCH SCHEME TO SPUR VIBRANCY OF MID AND SMALL-CAP PLCS, ENHANCING INVESTOR INTEREST

The Mid and Small Cap (MidS) Research Scheme was launched on 25 May 2017 with the aim of elevating the profile of mid and small-cap companies, and further spur the vibrancy of this potentially high growth market segment. Under this Scheme, an inaugural batch of 100 mid and small-cap public listed companies (PLCs) will receive independent analyst coverage by licensed research houses.

The MidS Research Scheme was initiated with the primary objective of creating better value recognition of mid and small-cap companies as they form an important segment of the listed equity asset class within the overall capital market.

The Scheme will commence with 22 research houses that have committed to provide research coverage for eligible PLCs. Each eligible PLC will be assigned two research houses, further improving the dissemination of the research, including to retail investors, so as to attract more investor participation in the segment. Selected PLCs underwent a screening process encompassing both qualitative and quantitative criteria, and represent a market capitalisation range of RM200 million to RM2 billion.

MSWG’S QUICK TAKE ON ONGOING CORPORATE DEVELOPMENTS

CHINA AUTOMOBILE PARTS HOLDINGS LIMITED (“CAP”)

The Board of Directors of CAP provided the following information in the announcement regarding the delay in releasing the Company’s Annual Report:-

The company’s auditor, PKF has requested to carry out certain procedures that include the verification of the company’s value added tax devices with the relevant tax authorities’ system directly and completing the verification of the consignment notes/appropriate delivery documentation against the sales invoices. The tax system in Fujian Province, China underwent three major upgrades and reforms within a year and this may have resulted in certain tax information being inaccurate. In order to meet PKF’s request, the person in charge of the company is in the midst of liaising with the tax department, so that the auditor can clarify directly with the tax department, where necessary.