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 presents the Hong Kong regulatory framework and developments in corporate governance. It includes insights from HKEX, that governance and ESG considerations should be embedded in business strategy for achieving long-term and sustainable business success.


Executive Summary

HKEX began introducing various corporate governance standards nearly 20 years ago. Today, our listed companies have achieved a high degree of compliance with the provisions in our Corporate Governance Code.

Moving forward, governance and ESG considerations will move from compliance to being embedded in business strategy, for achieving long-term and sustainable value creation. This underlies recent regulatory initiatives, culminating in HKEX’s latest corporate governance framework revisions. The latter focus on instilling change in mindset of listed boards, board independence, succession planning, and diversity.

This article provides a succinct outline of the Hong Kong regulatory framework and developments, including timely observations by the HKEX.

In fact, good governance goes beyond the regulatory front. Covid-19 has contributed to emerging trends–like “corporate purpose” (beyond profit maximization) and “hybrid” shareholder meetings (as an example of embracing technology).

In fact, good governance goes beyond the regulatory front. Covid-19 has contributed to emerging trends–like “corporate purpose” (beyond profit maximization) and “hybrid” shareholder meetings (as an example of embracing technology).


About the Author

“Corporate governance in Hong Kong: from compliance to strategy” was written by Wendy W.Y. Yung and co-published by Nasdaq and EquitiesFirst. It is the second in the series Corporate Governance: Driving Value Creation in Asia Pacific.

Wendy Wen Yee YUNG is an advocate for good corporate governance in Hong Kong. Prior to founding “Practising Governance” for this cause, Wendy was Executive Director and Company Secretary of Hysan Development and played a key role in developing and implementing its well-recognized corporate governance practices.

Wendy is a co-opted member of the Audit and Risk Committee of the Hong Kong Hospital Authority. She previously served as a member of the Listing Committee of the Stock Exchange of Hong Kong Limited.

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