--- SEARCH ---
WEATHER
CHINA
INTERNATIONAL
BUSINESS
CULTURE
GOVERNMENT
SCI-TECH
ENVIRONMENT
LIFE
PEOPLE
TRAVEL
WEEKLY REVIEW
Learning Chinese
Learn to Cook Chinese Dishes
Exchange Rates


Hot Links
China Development Gateway
Chinese Embassies


Modern Corporate System Required for Listed Firms
The State Economic and Trade Commission and the China Securities Regulatory Commission said they will examine China's listed companies to make sure the firms are implementing a modern corporate system.

During the investigation from now until November, the State Economic and Trade Commission will focus on the behavior of shareholders, while the securities regulator will review the conduct of listed companies, according to Jiang Qiangui, vice-minister of the State Economic and Trade Commission.

A modern corporate system is the key to the sustained growth of Chinese enterprises and a healthy stock market, Zhou Xiaochuan, chairman of the securities regulator, said at a national teleconference in Beijing at the weekend.

Improving such a system in listed companies is also crucial to the development of China's State-owned enterprises, given that listed State-owned enterprises contributed 63 percent of the total profits generated by State firms in 2000, said Jiang.

China had registered 1,169 listed companies by last month. They have a market value of 4.55 trillion yuan (US$548.2 billion), representing half of the country's gross domestic product, according to Zhou.

Although the listed firms have made headway in improving corporate governance and internal management, they have yet to exert themselves to meet the high standards of a modern corporate system, Zhou said.

The State holds the majority of shares in many listed companies. Both Zhou and Jiang said that this dominance threatens to undermine the interests of small and medium-sized shareholders.

In particular, some government departments and controlling shareholders have interfered with the operations of listed firms. Some listed companies are not genuinely independent from shareholders in terms of staff, finance, assets and business activities, Zhou said.

Another problem with listed companies is that some of them provide fake accounts and false information to fool investors, which adds to the risks in the securities market, Jiang said.

Furthermore, the listed firms have yet to adopt an income distribution system that gives enough incentives to good management performance, which a modern corporate system requires, Jiang said.

(China Daily May 13, 2002)

Hang Seng China Enterprises Index Up
Three Forces Set Back Stock Market
New Rules Govern Stock Firms
State Council Action Aimed at Safeguarding Markets
New Stock Rules Aimed at Curbing Speculation
China Stock Markets Web
Rules to Be Set for Foreign Firm Listing
New Rules Set for Domestic Listed Firms
Struggling Firms Now Face Ouster
Listed Company Can Go Broke
Listed Firms Face Tough New Quarterly Standards
Listed Companies Report Moderate Growth
Print This Page
|
Email This Page
About Us SiteMap Feedback
Copyright © China Internet Information Center. All Rights Reserved
E-mail: webmaster@china.org.cn Tel: 86-10-68326688