Good corporate governance brings a number of benefits to a company, not least the access to funds and potential growth potential. Good corporate governance improves shareholder confidence in companies and is fundamental to the proper functioning of capital markets. Corporate governance relies on facilitating and encouraging transparency and accountability. Shareholders expect companies to be properly governed, and so corporate governance is primarily concerned with the way in which companies are controlled and directed. Our initial focus has been on the UK markets, but we believe it is also vital for China to improve actual and perceived governance of its domestically listed entities as well. This is in order to give individual Chinese investors greater confidence in investing, and to support the development of institutional investment in China, such as the mutual fund/investment fund/hedge fund activities undertaken by UK based international investment firms including Aberdeen Asset Management, Fidelity, Schroeder's and Henderson. Consequently, there are substantial benefits to China in improving corporate governance issues and it is not merely a UK problem needing a UK solution...
China Resolutions has been instrumental in creating a dialogue for the improvement of corporate governance for Chinese companies seeking to access the London capital markets.
China Resolutions has been working closely with the British Embassy in Beijing, the Chinese Embassy in London, the China Britain Business Council, the Department of International Trade, the Great Britain China Council, the Institute of Directors (China City Branch), the City of London Corporation and the London Stock Exchange to develop and improve governance between China and the UK. As part of this exercise, two groups have been formed, namely China Non-executive Directors ("CNED's") and China City Group, in conjunction with Nabarros' and RSM. The CNED's and China City Group are now working with China Resolutions to provide a draft policy document for the British Embassy in Beijing.
The China City Group consists of lawyers, accountants, NOMAD's, brokers, PR companies, and NED's with an interest in China.