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GOVERNANCE
GROUP MEMBERS
IRUM
BBA (HONS)
6th semester
CORPORATE GOVERNANCE
IN
CHINA
INTRODUCTION
Corporate governance in China has undergone significant
change during the past three decades as the Chinese
economy has liberalized and developed.
In the late 1970s, its GDP has been growing at an average
annual rate of 9.73 percent.
Today, there are more than 1,500 publicly traded Chinese
companies, and the total market capitalization surpassed 24.5
trillion renminbi (RMB) in August 2007.
In a survey by the World Economic Forum, China ranked 44
out of 49 studied countries in terms of corporate governance
(Liu, 2006).
CONTINUE
Highly concentrated ownership
Of the 1,602 companies listed on the Shanghai and Shenzhen
stock exchanges in August 2008, the single largest owner held
36 per cent of an average companys shares, the top three
owned 49 per cent and the biggest five controlled 52 per cent.
Strong State Ownership
State-owned or state-controlled enterprises were responsible
for 31 percent of Chinas GDP in 2007, but the Shanghai Stock
Exchange reported that the government held 51 percent of its
listed shares.
DEVELOPMENT OF CG IN CHINA
The historical development of CG in China has gone through
four stages.
Major players
Regulations,
Codes of conducts,
Certification of financial reports ,
Legal enforcement, etc
Regulators
Board Structure
Corporate Responsibility
2.
3.
Executive Compensation
The board of directors shall study and arrange the agenda for
a shareholders meeting
Duties of Directors
Prior to 2001, no law or regulation required that any directors be
independent of management. The CSRC now requires that a
third of the seats on a publicly listed company board be held by
independent directors, and many companies have reached that
threshold
Scandals