LEHMAN, LEE & XU China Lawyers |
China Corporate Governance News |
October 2013 |
The China Corporate Governance News keeps you on top of business, economic and political events in the China. |
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In the News |
China's Economy Transforming but Challenges Remain |
China's economic growth is becoming more balanced but there are still some important issues to be addressed, according to a U.S. expert. China's economy had grown at a tremendous pace and the current big challenge is to go from an unbalanced to a balanced economy, said Stephen Roach, a senior fellow at Yale University and former chief economist at Morgan Stanley Asia, at a New York Society of Security Analysts forum Wednesday. China also needs to open up the market to more active participation by foreign companies and address the issues, including transparency of corporate governance, and there was a lot pressure on the Chinese to do that, Roach said. "I'm hopeful that you'll see some moves to further open up their markets to outside investors and address some of these issues," he said. Roach said the central bank and central government were sending a strong signal that the leveraged credit-driven growth would change. China's growth rate slowed in the first quarter this year and the leadership was sending the message they were willing to accept slower growth without physical stimulus, the economist said. He also saw early signs of a shift, but he thought the new leadership is different in that they want to go deeper than just quantitative growth and really address quality of growth. However, James Chanos, president and managing partner at Kynikos Associates LP, told the event that shadow banking is a big risk in China and loans going to local funding vehicles are the most likely to suffer financial distress. He also warned China should be careful with the housing market's share of China's GDP. Chanos suggested China slow credit growth, but the problem is that every time that happens, the economy slows further, creating a "chicken and egg" problem, which makes the transition more difficult. Source: http://english.cri.cn/6826/2013/10/10/2702s791591.htm |
Alibaba CEO: Company has decided not to list in Hong Kong |
Chinese e-commerce company Alibaba Group Holding Ltd has decided not to list on the Hong Kong stock exchange, Chief Executive Jonathan Lu told Reuters on Thursday. The company had planned to list in Hong Kong under a structure that would allow its "partners" - a group of founders and senior employees - to keep control over the makeup of its board. Also read: Net FII flows in 2013 likely to be lower than last year "The Hong Kong authorities need time to study this corporate governance structure (for knowledge-based companies)," Lu said in an interview at the company's headquarters in China's Hangzhou city in Zhejiang province. He added that the company had not yet committed to list on any other exchange, including the New York Stock Exchange. Source: http://www.reuters.com/article/2013/10/10/us-alibaba-ipo-idUSBRE99909C20131010 |
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