Under PRC laws, a two-tiered board structure is adopted. For day-to-day management of the company, a board of directors or an executive director (in case of a small-scale limited company) and a board of supervisors or a supervisor (in the case of a small-scale limited company) must be appointed.
Under PRC laws, a two-tiered board structure is adopted. For day-to-day management of the company, a board of directors or an executive director (in case of a small-scale limited company) and a board of supervisors or a supervisor (in the case of a small-scale limited company) must be appointed.
Are Chinese corporate governance practices a risk to minority shareholders?
As China’s market becomes more accessible to global investors, corporate governance practices will likely face increased comparison to global standards.
This report examines the opportunities and risks to minority shareholders presented by current corporate governance practices in China.
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Emergence of Corporate Governance
Until recently, the government controlled almost every aspect of China's economy, and most enterprises were state-owned.
In the 1990s, China took the first steps toward modern corporate governance by establishing the Shanghai and Shenzhen Stock Exchanges and by creating a new government body—the China Securities Regulatory Commission (CSRC)—to regu.
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Future Prospects and Recommendations
Despite these problems, the report's authors are optimistic about the evolution of corporate governance in China.
They point to the increasing globalization of listed companies, such as those listed in Hong Kong, as a trend that has helped align those companies with international standards of governance.
They also point to the new government policy.
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Obstacles to Progress
Overwhelming concentration of state ownership.Two-thirds of companies listed in the Shanghai Stock Exchange are state enterprises, a legacy of the state-controlled economy.
This problem is the sour.
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What is the China Governance Project?
The China Governance Project was also the opportunity to better understand the challenges faced by China and to organise policy dialogues on these issues.
This project was undertaken in the framework of the programme of co-operation between the OECD and China, initiated in 1996.
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When did China adopt its first corporate governance code?
China adopted its first corporate governance code in 2001, ahead of many APAC peers, and with updates in 2011 and 2016.
As China’s market becomes more accessible to global investors, corporate governance practices will likely face increased comparison to global standards.
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Why is corporate governance important in China?
Since it was in the early 1990s that China launched its stock market and began to establish modern enterprises, corporate governance practices in China have grown alongside this global trend.
In the meantime, China has experienced spectacular economic growth and given rise to a large number of influential corporations operating worldwide.
Chinese company
China Universal Asset Management Co., Ltd. (汇添富基金管理股份有限公司), also known as China Universal or CUAM, is a Chinese investment management company specializing in China-related investment management solutions founded in February 2005.
It is headquartered in Shanghai, China, with branch offices in Beijing, Guangzhou, and Chengdu.
In 2010 and 2013, China Universal established subsidiaries China Universal Asset Management Company Limited and China Universal Capital respectively.
The firm's major shareholders are Orient Securities Co., Ltd., Wenhui-Xinmin United Press Group, and China Eastern Airlines.
