From: The Australian Financial Review  By: Patrick Durkin

A new Chinese Australian stock exchange backed by wealthy Chinese businessman George Wang is set to launch early next year, after the corporate regulator gave the bourse final approval to launch its operations.

Mr Wang acquired the stock exchange licence after the collapse of the Austock group in 2008 and has been working to obtain regulatory approval to launch the Asia Pacific Stock Exchange (APX). The exchange is specifically designed to lure Chinese firms to list in Australia with the intention of attracting Chinese investors.

ASX chief executive Elmer Funke Kupper has also said he is determined to attract Asian-based listing candidates, pitting the two exchanges against each other in attracting new business from the region.

APX chief operating officer and former ASIC executive David Lawrence on Monday moved to ward off criticism that the new exchange will set a lower bar for Chinese companies to list in order to offer an attractive alternative to the ASX. “In response to market feedback, we want APX to be a market attractive to both corporations and genuine medium- to long-term investors," Mr Lawrence said.

Essential for growth

The approach distinguishes the business from other ASX-rival, Chi-X which heavily relies on the business of HFT.

Stockbrokers CMC Markets and BBY have both signed up to the new exchange as approved brokers and 13 sponsors are working to bring companies to the market, the APX said.

Glenn Rosewall, executive chairman of stockbroker BBY said accessing Asian capital was essential for growth.

“Many opportunities are being unlocked through greater access to the Asia Pacific marketplace, and we are keen to get involved with any companies interested in listing on the APX," Mr Rosewell said in a statement.

Andy Rogers, head of CMC Markets Stockbroking said that the new exchange would also benefit local investors.

“It gives Australian investors the opportunity to access the Chinese economy with the reassurance that the same strict regulatory standards apply to the Chinese companies listed as those which are on our local bourse."

“For instance there will be no short selling allowed on APX and no encouragement of high-frequency traders,"