The Shanghai Stock Exchange (SSE) has recently elected the 5th Expert Consultative Committee for the SSE Corporate Governance Sector and re-evaluated the sector in 2018. The new 15-member committee consists of renowned scholars in the field of corporate governance research and frontline experts of regulation on listed companies in China, which is of great representativeness.
The meeting mainly listened to the preparation for the evaluation of the SSE Corporate Governance Sector in 2018, and the new committee re-assessed the sector in 2018. A total of 11 institutions participated in the evaluation, including Guotai Jun'an Securities, Shenwan Hongyuan Securities, China International Capital Corporation Limited, Haitong Securities, Aegon-industrial Fund, E Fund, CCB Principal Asset Management, BOCOM Schroders, Financial Engineering Research Center of Nanjing University, Pengyuan Credit Rating Co., Ltd., and China Chengxin Securities Rating Co., Ltd.
According to the rules of procedure for the evaluation, the committee, on the basis of the primary selection by special consultancies, appraised 43 newly-applied companies and samples, among which 19 failed as they did not meet the application requirements. Among the 299 old sample companies, 27 were rejected as they did not match the application requirements or had problems in their corporate governance. Finally, 24 companies were newly included in and 27 were moved out, making the latest number of companies at 296.
The Expert Consultative Committee for the SSE Corporate Governance Sector, founded in 2007, aims to offer consultative or decision-making suggestions for the SSE Corporate Governance Sector. The companies of the SSE Corporate Governance Sector are selected in line with the "Appraisal Measures of SSE Corporate Governance Sector" and through public appraisal, comments by consultancies, primary selection and examination by the expert consultative committee. The sector is re-appraised from May to June every year.