Business / Markets

China complies first corporate management indexes to help investors

By Yang Ziman ( Updated: 2015-11-06 14:06

A set of corporate management indexes compiled by a research group at Beijing Normal University will help protect the rights of small and medium investors in the stock market, said Gao Minghua, the lead researcher of the indexes, at a news conference on Thursday.

The six corporate management indexes, including the salary of the top executives, the management of the board and the financial status of the listed companies, are compiled on the basis of all the listed companies in Shanghai and Shenzhen Stock Exchange, said Gao.

These are the first corporate management indexes in China that take full sample in the compilation, which makes them the most credible and comprehensive in the evaluation of a company's investment value, Gao added.

"Having a set of open and credible corporate management indexes is in the interest of both the investors and the companies themselves," said Gao.

According to Gao, small and medium stock investors will be able to tell what companies are worth investing and avoid speculation with the help of objective corporate management indexes.

"In the United States, some corporate management index compilation companies highlight the bottom companies according to their average indexes at the end of every year. It turns out that these companies tend to perform a lot better the next year. Chinese stock markets will be a lot more stable if we also have such indexes," Gao added.

The indexes will be released on December 12.

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