From the Financial Times (link)
The development of China’s capital markets will continue to trail its strong economic growth until there is a radical improvement in corporate governance standards, according to a survey of the region’s most powerful investors.
Institutional investors in China say the lack of independent directors, byzantine share-ownership structures and poor regulations and disclosure are the chief reasons leading them to hold back from investing in listed companies there. More than nine out of 10 investors in China saidthey saw corporate governance as a necessary building block for successful capital markets, compared to just 60 per cent of investors in continental Europe.
