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Conference on China's Interior Firms Listed in HK Opens in Beijing
The Hong Kong Exchanges and Clearing Limited (HKEx) hosted a conference on interior of China companies listed in Hong Kong Thursday in Beijing, the first of its kind by the HKEx.
Speaking on the occasion, Zheng Silin, deputy head of the Central Enterprises Working Committee, said overseas listings have played a positive role in promoting the reform of China's state-owned enterprises (SOEs) and improving their management and international competitiveness.
On the other hand, listings of interior of China firms in Hong Kong also improved the structure of listed firms in Hong Kong and consolidated Hong Kong's status as an international financial center.
He said the authorities in the interior of China will continue allowing some of its best firms being listed in Hong Kong in the future.
Zhou Xiaochuan, chairman of the China Securities Regulatory Commission (CSRC), said corporate governance has been a weak link of China's listed firms, most being transformed from SOEs.
He disclosed that the CSRC will make an all-out effort to improve the corporate governance of Chinese firms, including listing corporate governance as an important part of compulsory information disclosure by listed firms.
The CSRC will carefully study the corporate governance principles suggested by the Organization of Economic Cooperation and Development (OECD) so as to work out a set of rules adapted to Chinese situations.
Jiang Qiangui, vice-minister in charge of the State Economic and Trade Commission, said China's reforms since 1998 in disconnecting government departments from enterprises have paved way for improved corporate governance in China.
As for listed firms, she said efforts should be made on how to handle the relations between listed firms and their parents firms.
Rules must be set to ensure that major decisions for listed firms are made by the boards of members, not by the parents firms or the management, she said.
There should also be legislation on independent board members from outside and the restriction of the number of managers in the board, and vice versa, she added.
HKEx chairman Charles Lee Yem-kwong briefed on the latest development in corporate governance worldwide and the reform of the international accounting rules.
He stressed the importance of adopting international accounting rules for Chinese companies listed or aiming to be listed on overseas bourses.
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