PRC lags on corporate governance

Author: Brian Yap | Published: 14 Jun 2017

PRC companies are lagging behind their Asian peers in terms of corporate governance.

That was a key concern raised today by the majority of panelists at the China Capital Markets Conference run by Asifma.

PRC regulators, notably the China Banking Regulatory Commission (CBRC) and the China Securities Regulatory Commission (CSRC) have rolled out new measures aimed at tackling corporate governance issues in the world’s second-largest economy. In particular, the CSRC has been working to amend the country’s corporate governance code, which was first introduced in 2002.

But panelists at the conference pointed to frustration felt by overseas and Hong Kong regulators when seeking to take detailed documents out of China for their investigation into alleged corporate malfeasance committed by PRC companies abroad.

"Hong Kong has the ability to list PRC-based companies, but cross-border enforcement is exceptionally difficult," said Keith Pogson, senior partner of financial services at Ernst &...