As the year that marks the 20th anniversary of the first listing of H shares in Hong Kong, the Hong Kong Exchanges & Clearing Ltd (HKEx) is making a stance for transparency and independence for listed companies. The exchange is under pressure from both regulators and investors to uphold standards after accounting and fraud scandals involving Chinese companies, and on the other hand, there is also a need to boost profits as IPOs dried up in 2012. To meet these objectives, HKEx needs to ensure a continual improvement on its corporate governance regulations, a key ingredient on sustaining public and investor trust.
Corporate governance carries a spectrum of meanings and significance in different contexts and markets across the world. As part of our service objective to support and assist listed companies to improve corporate governance, Grant Thornton Hong Kong has conducted a study on the corporate governance practices of Hang Seng Composite Index (HSCI) companies. This study is a follow up of our 2011 study which concluded that there is room for improvement in allowing for more objectivity, transparency and independence when it comes to promoting the interests of shareholders.
The 2013 study continued with a comparison of the FYR 2012 annual reports of 349 HSCI companies to examine the impact and compliance of governance reforms. The HSCI covers around 95% of the total market capitalisation of companies listed on the Main Board of SEHK. The results are also compared for Hang Seng Index (HSI) and Hang Seng China Enterprises Index (HSCEI).
Download《2013 Hong Kong Corporate Governance Review》
