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Improved Compliance in Hong Kong, Survey ShowsSubmitted by: David Smith, Co-Head, Asia-Pacific Corporate Governance Research

The Stock Exchange of Hong Kong recently released its third annual survey of compliance with the Code on Corporate Governance. The results show some improvement in levels of compliance with Code provisions:

1. Compliance improved across most provisions - around 98 percent of issuers complied with at least 41 of the 45 code provisions (up from the 96 percent that complied with 41 out of 44 code provisions in the second review).

2. However, only 43 percent of issuers had established a nomination committee (2006: 40.9 percent).

3. Moreover, only 10.8 percent of issuers reported on a quarterly basis (2006: 15.6 percent).

The review looked at disclosures of corporate governance practices made by 1,213 publicly traded issuers (listed as of Dec. 31, 2007) in their 2007 annual reports. The universe is a slight increase over last year when the second review looked at disclosures made by 1,114 listed issuers in their 2006 annual reports.

Full post as published by Institutional Shareholder Services -- Corporate Governance Blog on February 27, 2009 (boomark / email).