LunchCumSeminarCorporateGovernanceinHongKong「

1、Lunch Cum Seminar: Corporate Governance in Hong Kong香港企業(yè)管治午餐暨研討會香港企業(yè)管治午餐暨研討會30 January 2007Co-organized by合辦機構: HKIoD Corporate Governance Scorecard ProjectResearch CommitteeCoordinatorProf. Stephen Y L Cheung (City University of Hong Kong)MembersDr. J. Thomas Connelly (Chulalongkorn University)Dr.

2、Piman Limpaphayom (Chulalongkorn University)Ms. Ping Jiang (City University of Hong Kong)Research AssistantsMr. Andy Lau (City University of Hong Kong)Mr. Chung Cheong Wing(City University of Hong Kong)Mr. Ho Ka Ho (City University of Hong Kong)Ms. Jan Chan (City University of Hong Kong)Ms. Louise Z

3、hang (City University of Hong Kong)Mr. Patrick Tsang (City University of Hong Kong)Research Methodologies I Survey results based on publicly available information HSI, HSHKCI, HSCCI, and HSCEI constituent stocks Based on information disclosed in 2005 174 major companies are coveredSurveyed Companies

4、 I (as at 12/2005)Air china (753)CHALCO (2600)China Power (2380)CITIC Resources (1205)Allied Group (373)Chen Hsong Hldgs (57)China Res Land (1109)CKI Hldgs (1038)Angang Newsteel (347)Cheung Kong (1)China Res Logic (1193)CLP Hldgs (2)Anhui Conch (914)China COSCO (1919)China Res Power (836)CNAC (1110)

5、ASM Pacific (522)China East Air (670)China Resources (291)CNOOC (883)Bank of E Asia (23)China EB Ltd (165)China Shenhua (1088)CNPC (Hong Kong) (135)Bankcomm (3328)China Insurance (966)China Ship Dev(1138)COFCO Intl (506)Beijing Airport (694)China Life (2628)China South Air (1055)COSCO Pacific (1199)

6、Beijing Ent (392)China Mer Hldgs (144)China Telecom (728)CR Peoplesphone (331)BOC Hong Kong (2388)China Mobile (941)China Travel (308)CSCL (2866)Brilliance Ent (1114)China Netcom (906)China Unicom (762)Dan sing (440)BYD Co (1211)China Oilfield (2883)Chinese Est H (127)Dan Sing Banking (2356)Caf de C

7、oral H (341)China Oversea (688)CIFH (183)Datang Power (991)Cathay Pac Air (293)China Phama (1093)CITIC Pacific (267)Denway Motors (203)Surveyed Companies II (as at 12/2005)Dynasty Wines (828) GZI Transport (1052)Huadian Power (1071)K. Wah Intl (173)Esprit Holdings (330)HAECO (44)Huaneng Power (902)K

8、erry Ppt (683)FE Consort Intl (35)Hang Lung Group (10)Hutch Harb Ring (715)Kingway Brew (124)FIH (2038)Hang Lung Ppt (101)Hutch Telecom (2332)Kowloon Dev (34)First Pacific (142)Hang Seng Bank (11)Hutchison (13)LCH Bank (1111)Fongs Ind (641)Henderson Inv (97)Hysan Dev (14)Lenovo Group (992)Fountain S

9、et (420)Henderson Land (12)i-Cable Comm (1097)Li & Fung (494)Fubon BK (HK) (636)HK & China Gas (3)ICBC (Asia) (349)Lifestyle Intl (1212)Giordano Intl (709)HK&S Hotels (45)IDT Intl (167)Liu Chong Hing (194)Glorious Sun (393)HK Electric (6)JCG Holdings (626)Luen Thai (311)Great Eagle H (41

10、)HK Ferry (Hldgs) (50)Jiangsu Express (177) Maanshan Iron (323)Guangdong Inv (270)HKEx (388)Jiangxi Copper (358)Melco Intl Dev (200)Guangshen Rail (525)HKR Intl (480)Johnson Elec H (179)Miramar Hotel (71)Guangzhou Inv (123)Hopewell Hold (54)K M Bus Hold (62)MTR Corporation (66)Guoco Group (53)HSBC H

11、oldings (5)K Wah Cons (27)New World Dev (17)Surveyed Companies III(as at 12/2005)Next Media (282)Shanghai Ind H (363)Solomon Systech (2878)Vitasoy Intl (345)NWS Hldgs (659)Shanghai Pechem (338)Swire Pacific A (19)Vtech Holdings (303)OOIL (316)Shangri-la Asia (69)Swire Pacifice B (87)Weiqiao Textile

12、(2698)Oriental Press (18)Shenzhen Express (548)TCL Intl Hold (1070)Wharf Holdings (4)Pac Centry Ins (65)Shenzhen Intl (152)Techtronic Ind (669)Wheelock (20)Pacific Basic (2343)Shenzhen Invest (604)Texwinca Hold (321)Wheelock Prop (49)PCCW (8)SHK Ppt (16)Tianjin Dev (882)Wing Hang Bank (302)PCPD (432

13、)Shui On Cons (983)Titan Petrochem (1192)Wing Lung Bank (96)PetroChina (857)Shun Tak Hold (242)TPV Techonology (903)Yanzhou Coal (1171)PICC P&C (2328)Singamas Cont (716)Travelsky Tech (696)Yizheng Chem (1033)Ping An (2318)Sino Hotel (1221)Truly Intl (732)Yue Yuen Ind (551)Regal Intl (78)Sino Lan

14、d (83)Tsingtao Brew (168)Zhejiang Express (576)SaSa Intl (178)Sinopec Corp (386)TVB (511)Zijin Mining (2899)SCMP Group (583)Sinotrans (598)Varitronix Intl (710)SH Electric (2727)Smartone Tele (315)Vedan Intl (2317)Objectives of Corporate Scorecard for Hong Kong Listed CompaniesEncourage adoption of

15、best practiceof corporate governance in Hong Kong through a systematic evaluation of current practicesDefine a methodology/ framework to assess corporate governancepractices in Hong KongDevelop specific criteria and a measurement tool to evaluate individual companiesSet up processes to evaluate corp

16、orate governance of Hong Kongcompanies on an annual basisHopefullyResearch Methodologies II Avoids subjectivity bias Not dependent on companies willingness However, not as rich as an internal assessment . . and captures only what the companies released in public and their documentation Written reque

17、st was sent to individual companies. Only a few companies supplied us with full informationConsistency Each company was rated by two different members The overall results were cross-checked by academicsScorecard Followed The Five OECD Corporate Governance Principle OECD is internationally recognized

18、 HKEx guidelines comprehensively covered 174 public companies surveyedOECD principleNumber of questions & sub-questionsA.Rights of shareholders22B.Equity of shareholders13C.Role of stakeholders9D.Disclosure and transparency32E.Board responsibilities45121Positive Correlation between Good Corporat

19、e Governance and Company Valuation50556065707580859095012345678910Corporate Governance ScoreMTBVCorrelation=0.05, Significant at 1% levelMarket Valuation by Corporate Governance Entry QuartileImprovement of CGI Compared with 2002Mean of CGI increased by 16.14% compared with year 2002.ImprovementFreq

20、uency-6-0100-5235-104010-153615-2018206Corporate Governance Performance by IndicesHSCCI (恒生香港中資企業(yè)指數(shù)) HSCEI (恒生中國企業(yè)指數(shù)) HSI (恒生指數(shù)) HSHKCI (恒生香港綜合指數(shù)) Corporate Governance Performance by IndustriesCorporate Governance Performance by CategoriesA: Rights of Shareholders (股東的權利) B: Equitable Treatment of S

21、hareholders (對股東的公平待遇) C: Role of Stakeholders in Corporate Governance (利益關係團體在公司治理中扮演的角色)D: Disclosure and Transparency (公開與透明度)E: Board Responsibilities (董事會的責任)A.Rights of Shareholders (股東的權利) Improvements: Improve the quality of Notice to Call Shareholders Meeting Attendance of all Board members

22、, Esp. Board Committee Chairs92.6349.1971.47B. Equitable Treatment of Shareholders(對股東的公平待遇 )Improvements: Allow minority shareholders to influence the Board To use cumulative voting in the election of board members To facilitate voting by proxy95.1651.6171.01C. Role of Stakeholders in Corporate Gov

23、ernance(利益關係團體在公司治理中扮演的角色) Improvements: Disclose more details on the role of supplier/business partner Give more details on the environment issue in its public communication 1D. Disclosure and Transparency(公開與透明化 )Improvements: The information in websites Shareholding structure Organization structure To Disclose the managements shareholding Communication with public Analyst b