Corporate governance praise for telecom firm
By Zheng Lifei (China Daily)
Updated: 2006-04-20 07:09 Chinese public firms, however, performed poorly in fields such as
shareholders' rights and responsibilities of board directors, two areas that are
considered vital for sound corporate governance, the rating report noted.
"In those areas, even China's top 100 listed companies have a long way to
go," said Lu.
"It is in those two areas that Chinese listed firms should do the most in
order to refine their corporate governance," the professor said.
"Compared with pressure from the regulators, the capital market force is
still weak in terms of pushing listed companies to improve their corporate
governance behaviour," said Zhou Shaopeng, a corporate governance expert at
China National School of Administration.
It is the second annual corporate governance rating report to be released.
Sinochem International Corporation, a Shanghai-based chemical company, was the
winner of last year's rating and ranked sixth this year.
The ongoing share merger reform began last year to convert the listed
companies' non-tradable shares into tradable shares, the report says the reform
"has laid a solid foundation for public companies to further improve their
corporate governance."
"However, to have in place a sound corporate governance will be an arduous
task," the report warned.
(China Daily 04/20/2006 page9)
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