EquitiesFirst has joined forces with Nasdaq Governance Solutions to publish a series of research reports on corporate governance for selected markets in APAC. We have assembled a team of experts on corporate governance in each of the subject markets to provide background and key insights on the space. These reports are for both investors in and management of listed companies focused on creating long-term value in their enterprises.

The topic areas will range from governance best practices, technological shifts, regulatory trends, communication, investor expectations and other topics tailored specifically to each of the regions.

BACKGROUND

This report addresses the corporate governance considerations for Chinese companies listed on the Hong Kong Exchange. These are subject to the requirements of both the mainland and Hong Kong, thus, creating value for the companies in ‘a tale of two markets.’


EXECUTIVE SUMMARY

Mainland Chinese enterprises began listing in the H-share market some three decades ago. Access to international capital markets is a key consideration behind mainland Chinese companies’ decision to raise funds via an H-share listing. H-share companies are required to meet the governance requirements in both the mainland and Hong Kong, thus, subject to stricter corporate governance criteria. The corporate governance of H-share companies must meet the regulatory compliance requirements of the Stock Exchange of Hong Kong (HKSE), hence the pivotal role fulfilled by the board of directors. Furthermore, International institutional investors also exercise their rights actively, thus creating value for the companies.

This report will address the following three issues:

  • Why mainland Chinese enterprises choose to list on the H-share market
  • Application and coordination of mainland and Hong Kong corporate governance requirements for H-share companies; and
  • The benefits an H-share listing brings to corporate governance.

This report will address the following three issues:

  • Why mainland Chinese enterprises choose to list on the H-share market
  • Application and coordination of mainland and Hong Kong corporate governance requirements for H-share companies; and
  • The benefits an H-share listing brings to corporate governance.


ABOUT THE AUTHOR

Yu Hao, a Partner at Commerce & Finance Law Offices, specializes chiefly in capital market dispute resolution and corporate governance. After graduating from East China University of Political Science and Law and Durham University with an LLB, Mr. Yu earned an LLM in European Law at Paris 2 Panthéon-Assas University, as well as an MBA from the Tsinghua University-Cornell University Joint MBA Program.

He also works as a researcher with China ESG30 Forum, and as a public interest lawyer at China Securities Investor Services Center.

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