Chinese Corporate Governance

Project Leaders: Yong Kang and Richard Neu

China's rapid economic growth, huge domestic market, disciplined workforce, and increasing openness to international economy are strong attractions for foreign investors. Meanwhile, increasingly more Chinese corporations are listing on foreign stock exchanges or seeking opportunities to acquire foreign companies. One consequence of increasing two-way investment activity is that corporate communities with differing rules, practices, and perhaps basic philosophies relating to corporate law and governance are interacting with each other more often. These interactions raise a variety of questions for investors, for recipients of foreign investment, and for regulators. This study aims to provide a basic understanding of corporate governance in China and compare it with that in the U.S. It will also study the implications on corporate governance of Chinese corporations that are listed on foreign exchanges or operating on a global base.