Government Pension Fund Global, Oslo, welcomed proposals from Chinese regulators to improve transparency and strengthen shareholder protection in China.
The China Securities Regulatory Commission has proposed that Chinese companies publish more detailed information on how the board and its committees perform their duties in annual and semi-annual reports, as well as details of the board members, the dates and agendas of the meetings, and any major proposals made during these meetings. .
Norges Bank Investment Management, the manager of the Norwegian crowns 11.37 trillion ($ 1.36 trillion) sovereign wealth fund, also welcomed the CSRC’s proposal for companies to disclose changes to the structure of issued shares, such as the introduction of double class shares and changes in share class, during the reference period. Companies would also be asked to justify significant changes to financial statements and to publish specific information on transactions involving significant shareholders.
GPFG, which invests $ 5 billion in stocks and $ 1.8 billion in fixed-income securities in China, said in a letter of response to proposals, as of June 7, that it is important for investors for corporate boards to address and report on important sustainability issues.
Boards of directors must achieve the objective of creating value for shareholders, while respecting the principles of responsible business conduct, according to the letter from Carine Smith Ihenacho, Director of Governance and Compliance, and Severine Neervoort, Senior Analyst – Corporate Governance, at Norges Bank IM.
They should understand the broader social and environmental consequences of business operations and value chains, set their own priorities to address them and consider the associated results, the letter adds.
It could also be advantageous for listed companies to publish full English versions of all reports and disclosures alongside those in the local language, according to the letter.
Norges Bank also said it welcomes efforts by the Chinese regulator to improve corporate disclosures on environmental and social issues, but would like the regulator’s guidelines to refer to recognized international frameworks, such as standards. of the Climate-Related Financial Disclosures Task Force and the Sustainability Accounting Standards Board, so investors can compare company policies.