More disclosure

Poor corporate governance is holding back the growth of China's capital markets, which are consequently lagging well behind the country's economic development.

by ISS Global Institutional Investor Study
Last Updated: 23 Jul 2013

Near or double-digit economic growth rates compare with a halving in the total value of local stockmarkets in four years to June 2005.

Corporate governance is seen as the greatest risk of investing in Chinese companies by half of surveyed investors; specifically, ownership structures that disadvantage outside investors and the lack of independent directors, regulations and transparency.

Investors also regard corporate governance as more important in China than in any developed market. They view it as a means of improving investment returns and value, as well as a risk management tool.

The most significant changes expected over the next three years are a reduction in the prevalence of non-tradeable shares; more independent boards; the introduction of equity-based pay to align managers' interests with those of minority shareholders; and better corporate disclosure.China: the next global hotspot of corporate governance

ISS Global Institutional Investor Study, 2006
Review by Steve Lodge.

Find this article useful?

Get more great articles like this in your inbox every lunchtime

Is it favouritism to protect an employee no one likes?

The Dominic Cummings affair shows the dangers of double standards, but it’s also true that...

Masterclass: Communicating in a crisis

In this video, Moneypenny CEO Joanna Swash and Hill+Knowlton Strategies UK CEO Simon Whitehead discuss...

Remote working forever? No thanks

EKM's CEO Antony Chesworth has had no problems working from home, but he has no...

5 rules for work-at-home productivity

And how to focus when focusing feels impossible.

Scandal management lessons from Dominic Cummings

The PR industry offers its take on the PM’s svengali.

Why emails cause conflict

And what you can do about it.