皇冠体育app

IIF speaks out on corporate governance
By Chang Tianle (皇冠体育app Daily)
Updated: 2004-04-16 08:40

The Institute of International Finance (IIF) is recommending a series of actions to reduce obstacles in the creation of a good corporate governance environment in 皇冠体育app to attract more foreign investment.

The proposals include reducing State ownership in listed companies, enhancing the authority of leading stock exchanges - particularly regarding the enforcement of shareholder protections. It also recommends 皇冠体育app develop an institutional investor base and codify civil liabilities for insider trading and other fraudulent activities.

The IIF, whose 330-odd members include the world's key banks, issued its new report on 皇冠体育app's corporate governance in Shanghai yesterday.

Victor Chu, chairman and chief executive officer of First Eastern Investment Group, who also played a leading role in the report, said great strides have been made in corporate governance in the past ten years.

"The Chinese authorities understand the importance of international portfolio equity interests in both domestic and offshore capital markets. It is the top priority for them," he told reporters.

The IIF projects that net portfolio equity flows into 皇冠体育app this year will nearly double last year's figures and reach a record of US$12 billion. This is in addition to the already high levels of foreign direct investment flowing into 皇冠体育app, which the IIF expects will exceed US$53 billion in 2004, US$4 billion more than the 2003 volume.

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