The FINANCIAL — IFC, a member of the World Bank Group, is helping China market regulators gain a better understanding of the latest corporate governance developments as the authorities are targeting to complete a revision of the country’s corporate governance code by the end of the year. Improved corporate governance will help companies attract more capital and become more sustainable.
High-level executives from the China Securities Regulatory Commission, the State-owned Assets Supervision and Administration Commission, the Shanghai and Shenzhen stock exchanges, and the China Association for Public Companies are attending a two-day seminar organized by the China Securities Regulatory Commission and supported by IFC in Beijing. IFC is providing technical advice to the commission on the revision of the China corporate governance code, according to IFC.
“From our six decades of global experience, we know that good corporate governance practices boost company performance, help attract more investments, and build sustainable businesses,” said IFC Director for East Asia and the Pacific Vivek Pathak. “We are happy to see Chinese regulators focused on further strengthening governance practices among Chinese companies.”
At the “International Seminar on Corporate Governance of Listed Companies” that begins today, distinguished speakers include corporate governance experts from IFC, the World Bank, and the Organisation for Economic Co-operation and Development. They introduce participants to new developments in corporate governance and corporate governance codes and share their experience in the revision of such codes. They also discuss corporate governance monitoring and enforcement practices as well as the investors’ role in improving corporate governance.
Last year, the OECD amended the G20/OECD Principles of Corporate Governance – considered a benchmark of best practices – to address issues such as the growing complexity of the investment chain and the changing role of stock exchanges. Mats Isaksson, its Corporate Affairs Division Head, explains the changes to the Chinese regulators at the seminar. China is among many countries that have taken steps to revise their corporate governance codes since the development of the OECD Principles of Corporate Governance in 1999.
Since 2003, IFC has supported China’s efforts to strengthen corporate governance among Chinese companies by offering advice to individual companies, building partner institutions’ capacity to offer corporate-governance training, working with regulators to improve the regulatory framework, and organizing public seminars to share best practices. IFC’s Corporate Governance Program in East Asia and the Pacific is funded by the State Secretariat for Economic Affairs of Switzerland.
IFC has contributed to the adoption of 95 corporate governance codes, laws, and regulations in more than 30 countries worldwide.