The Stewardship of Institutional Investors in China: The Way Forward
Date & Time: March 27, 2024 (Wednesday) 12:30-13:30
Venue: Room 723, 7/F, Cheng Yu Tung Tower, The University of Hong Kong
(In-person only)
Abstract:
Reflecting on the 2008 Global Financial Crisis, institutional investors have been criticized for their passive oversight of corporate governance in their investee companies. In response, the UK became the first jurisdiction to develop a stewardship code in 2010, aimed at promoting responsible investment practices and active engagement in corporate governance by institutional investors. Following the UK’s lead, over twenty jurisdictions worldwide have introduced their own stewardship codes, aligning with the global trend towards sustainability and responsible investment. Although China has not yet adopted a formal UK-style stewardship code, its regulatory guidance and policies designed to encourage responsible investment practices align with stewardship principles. Pangyue analyzes various types of institutional investors in China and assesses the evolving stewardship roles of these investors in Chinese listed companies. She Advocates for a redesign of the traditional UK-style stewardship framework, suggesting a shift in stewardship responsibility towards investors who inherently possess incentives or resources, specifically strategic investors and the China Securities Investor Services Center. These insights will contribute to targeted and impactful corporate governance reforms, thereby enhancing the effectiveness of institutional stewardship in jurisdictions with concentrated ownership.
Speaker:
Pangyue Cheng is a PhD Candidate at the National University of Singapore Faculty of Law, where she also works as a research assistant. She is currently a visiting researcher at the Philip K.H. Wong Centre for Chinese Law at The University of Hong Kong and the Center for Chinese and Comparative Law at the City University of Hong Kong. She was an International Fox Fellow at the Yale University MacMillan Center, focusing on sustainable development and corporate governance. Her research has been published in several academic journals on institutional stewardship, AI algorithms corporate responsibility and central bank digital currencies. Pangyue’s present research focuses on mitigating corporate governance issues in concentrated ownership companies through institutional stewardship.
Chair: Hualing Fu is the Warren Chan Professor in Human Rights and Responsibilities and Dean of the University of Hong Kong Faculty of Law.