China Securities Regulatory Commission (CSRC) and China Association for Listed Companies (CAPCO) jointly organized the International Seminar on Corporate Governance of Listed Companies in Beijing on August 31st and September 1st. CSRC Chairman Mr. LIU Shiyu spoke at the seminar.
In his speech, Mr. LIU pointed out that China has attached great importance to corporate governance in the process of building up a socialist market economy. The past experience of China’s SOE reform and capital markets development has shown that advanced corporate governance is a determinant of the quality of listed companies and of the sound and steady development of the capital markets in the long run. China’s Code of Corporate Governance for Listed Companies (2002), modeled after the OECD Principles of Corporate Governance and drawing on good practices of other economies, has played an important role in the advancement of corporate governance in China, but is obviously lagging behind China’s capital markets development and the latest governance standards worldwide.
Mr. LIU stressed that China, as one of the proponents and supporters of the G20/OECD Principles of Corporate Governance, needs to revise its corporate governance code expeditiously, improve the governance structure of listed companies, raise their governance standards and overall quality, so as to reinforce the foundations for capital markets development, and to benefit the economy in China and the world as a whole. Any efforts to improve corporate governance in China must be, on the one hand, rooted in China’s current legal and institutional arrangements and, on the other hand, in line with updated international principles and standards. Joint efforts from market regulators, SROs and listed companies themselves are necessary to solve the issue of “copying the look but missing the essence”. Enhanced transparency, particularly timeliness and comprehensiveness of information disclosure by listed companies should be targeted at in improving corporate governance. Efforts must also be made to ensure that directors, supervisors and senior executives of listed companies receive ongoing training in this regard.
Experts from the Organization for Economic Cooperation and Development (OECD), the World Bank, the International Finance Corporation (IFC), the International Corporate Governance Network (ICGN) and Tsinghua University, and over 60 representatives from the People’s Bank of China (PBC), State-owned Assets Supervision and Administration Commission (SASAC), China Banking Regulatory Commission (CBRC), China Insurance Regulatory Commission (CIRC), CSRC, CAPCO, Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) attended the seminar and held in-depth discussions on issues including global corporate governance practices and the revision of China’s Code of Corporate Governance for Listed Companies.