If Chinese publicly listed firms are to attract British investors, they will have to improve various aspects of their corporate governance structure, according to a new report by the China City Group, which comprises British and Chinese business leaders.
The Group ultimately wants to aid Chinese companies to acquire British funding and list on the London stock market. But in order to do so, Chinese firms will have to follow international corporate governance rules, something that many Chinese-listed companies in London, along with Hong Kong, have failed to do.
The report states that British investors have been losing interest in Chinese-listed companies in London because of their lack of corporate governance practices and processes.
There have been 110 Chinese company listings in London between 1997 and 2016. As of the end of July 2017, only 35 are still listed. The majority delisted, mainly due to their own corporate governance issues or due to a lack of investors’ trust in those companies.