On Nov 1, 2018, Chinese President Xi Jinping reiterated the “Three Non-Changeable” principle supporting the development of private economy has injected new energy to its development at the “Private Enterprise Seminar”. At present, there still exists many a problem and difficulty and how to resolve them and govern the corporations is the key and foundation for their sustainable development.

On Dec 22, 2018, the 13th China Corporation Governance Forum, also the launch event of the No.17 Report on Group Index of Chinese Listed Company Governance (2018) was successfully held. The forum was attended by nearly 300 government leaders, entrepreneurs, and experts, including Ji Xiaonan, former chairman of the Supervisory Board for Key Large State-Owned Enterprises affiliated to the State Council, Zhang Yonggui, vice-chairman and secretary of the Investment Association of China, Zhang Pingdan, deputy director of the Business School of Beijing Normal University. A discussion in depth on how to guarantee a sustainable development of private enterprises via corporation governance was carried out at the forum.

A group photo of the attendees of the 13th China Corporation Governance Forum.

The No.17 Report on Group Index of Chinese Listed Company Governance (2018), directed by Professor Gao Minghua of Beijing Normal University was released on the Forum. The report is the 17th report of the same kind by Gao, covering six groups of corporate governance indexes including the rights & interests protection index for the small and medium investors, index of board governance, index of entrepreneur’s capacity, index of financial governance, index of volunteer information disclosure and index of senior executives salary. The report also makes a comprehensive assessment and comparable analysis from the aspects of industry, region, ownership, listed board, etc.

The launch ceremony of the No.17 Report on Group Index of Chinese Listed Company Governance (2018)

The evaluation of the Chinese listed company governance group index uses the international standard. According to the report, the rights & interests protection index for the small and medium-scale investors has grown for 4 consecutive years from 43.07% in 2014 to the 52.40% in 2017; the index of board governance has steadily been going up for three years from 50.13% in 2015 to 51.41% in 2017; other indexes have had a stable elevation for the recent three to four years, except the index of entrepreneur’s capacity which has had a decline for five years and the salary index of listed state-owned company executives are much lower than that of non-state owned ones. Measures including rights and power delegation and effective stimulation should be taken to inspire them.

The evaluation of the Chinese listed company governance group index is the barometer to enterprise risk control and development, helping various investors identify valuable enterprises and provide long-term support for them, the self-diagnosis and governance risk-elimination of enterprises, provide big data support for deepening enterprise governance, etc.

Professor Gao Minghua delivers a speech to elaborate on his Report.

At the scene of the 13th China Corporation Governance Forum.