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  1. Jamie Allen (艾哲明) is responsible for overall management of the association, as well as directing ACGA’s research, advocacy and educational work in 12 Asia-Pacific markets. He is a published author and has more than 30 years’ experience as a writer, editor and analyst covering the economies of Greater China and East Asia from Hong Kong.

    • Introduction: Bridging The Gap
    • Turning Point
    • ACGA Survey—The Big Picture
    • Challenges—Foreign Institutional Investors
    • Common Threads
    • Empathy For Companies
    • Brave New World of Stewardship
    • Challenges—China Listed Companies

    The story of modern corporate governance in China is closely connected to the rapid evolution of its capital markets following the opening to the outside world in 1978. The 1980s brought the first issuance of shares by state-owned enterprises (SOEs) and a lively over-the-counter market. National stock markets were relaunched in Shanghai and Shenzhe...

    China thus appears at a new turning point in its market development and application of corporate governance principles. While it is difficult to predict how this process will unfurl, we believe three broad developments would be beneficial: 1. That unlisted and listed companies in China see corporate governance and ESG not merely as a compliance req...

    Are you optimistic?

    The good news from our survey is that a sizeable proportion of both foreign investors (38% of respondents) and China listed companies (52%) are optimistic about the investment potential of the A share market over the next five to 10 years, as Figure 1.1 below shows. Only 21% of foreign investors are negative, while the remainder are neutral. Not surprisingly, only 15% of China respondents were negative, while almost one-third were neutral.

    Do you agree with MSCI?

    The picture diverges on the issue of whether MSCI was right to include A shares in its Emerging Markets Index in 2018: only 27% of foreign respondents agreed compared to 65% of Chinese respondents, as Figure 1.2, below, shows. Almost half the foreign respondents did not agree compared to a mere 12% for Chinese respondents. A similar proportion was neutral in both surveys.

    The investment process

    Foreign investors face a range of challenges investing in China, the first of which is understanding the companies in which they invest. As Figure 1.3 below indicates, foreign investors do not rely solely on information provided by companies when making investment decisions, but utilise a range of additional sources. It appears that listed companies are not aware of this issue.

    Company engagement

    Globally, institutional investors seek to enter into dialogue with their investee companies. It is no different in China, as shown in Figure 1.4. But the process is not easy. And successful outcomes are fairly thin on the ground to date.

    Respondents gave a range of answers as to why the process of engagement was difficult and successful outcomes limited, but some common threads were discernible: 1. Language and communication: In addition to straightforward linguistic difficulties (ie, companies not speaking English, investors not speaking Chinese), the communication problem is some...

    Conversely, a few respondents expressed empathy for the position of companies. As one wrote: “There also appears to be an under appreciation by international investors of the differences in culture, political context, and the path and stage of economic development between China and the rest of the world. Any attempt at influencing changes without a...

    Yet most investors still find engaging with companies a challenge. A further reason may be that China is one of only three major markets in Asia-Pacific that has not yet issued an “investor stewardship code”. Such codes push institutional investors to take CG and ESG more seriously, incorporate these concepts into their investment process, and help...

    Some additional factors clearly play on the willingness of companies to take CG and ESG seriously, as Figures 1.8 and 1.9 below show.

  2. Jamie Allen. Secretary General, ACGA, Hong Kong. View bio. Debanik Basu. Lead – Emerging Markets, Responsible Investment & Governance, APG Asset Management, Hong Kong. View bio. Ruchi Biyani. Responsible Investment and Governance Analyst, Janus Henderson Investors, London. View bio.

  3. 2023年8月21日 · 亞洲公司治理協會 (ACGA)秘書長Jamie Allen及臺灣觀察主任Neesha Wolf拜訪本中心並就公司治理相關議題進行意見交流。 頁首. 最後更新時間:2023/08/21 15:17.

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