This article is originally posted on the WeChat official account of China Association for Public Companies (CAPCO).

On December 20, 2024, the Sustainable Development (ESG) Committee of China Association for Public Companies (CAPCO), in collaboration with its institutional committee member, E Fund Management Co., Ltd., organized a closed-door event for listed companies and institutional investors. The conference was themed on The Stewardship of Institutional Investors and the High-Quality Development of Listed Companies, co-hosted by ZD Proxy Shareholder Services. Attendees included representatives from the Department of Legal Affairs and Department of Fund and Intermediary Supervision of China Securities Regulatory Commission (CSRC), Asset Management Association of China (AMAC), Insurance Asset Management Association of China (IAMAC), over 50 listed companies, and more than 20 investment institutions and research institutions.

In his opening speech, Wei Feng, CAPCO Party Committee Secretary, emphasized that investors and listed companies are the primary source of vitality for the capital market development. In recent years, listed companies have been making consistent efforts to elevate the intrinsic motivation of corporate governance, which has led to new highlights and trends. CAPCO, following its principles of "Service, Self-regulation, Compliance, and Enhancement," has been enriching its toolbox of self-regulatory management and services to guide and support the high-quality development of listed companies.

Mr. Shawn Xinrong Woo, Co-CEO of E Fund, stated that the exercise of shareholder rights and participation in corporate governance is not only a mission in life of institutional investors to safeguard investor interests, but also an important channel for them to serve the high-quality development of listed companies. E Fund has been actively engaging in corporate governance, maintaining good communication with companies, and supporting their high-quality development.

During the keynote speech session, experts from the Department of Legal Affairs of CSRC introduced the new progress and trends in the rule of law in China’s capital market, and provided a comprehensive introduction of the 1+N policy system and supporting policies. Zheng Zhigang, professor at the School of Finance, Renmin University of China, and member of the Independent Directors Committee of CAPCO, shared his insights on the dynamics in the global governance pattern in a world of change, and analyzed the impact of geopolitics on corporate governance. Given the rising uncertainties, Chinese companies need to build more adaptive governance mechanisms and seize the opportunities brought about by global governance reforms.

In the session of updates sharing, Liu Yanfeng, Director of Corporate Governance Department of CAPCO, introduced the latest legislation, regulatory dynamics, and practices related to corporate governance of listed companies. Fu Hao, Managing Director of Equity Investment at E Fund, shared experiences and practices of how institutional investors participate in corporate governance through professional stewardship to promote high-quality development. Fang Ling, Partner of ZD Proxy Shareholder Services, provided a practical perspective on how responsible management can become a new driving force for corporate governance improvement and company value enhancement. Meanwhile, The Research Report on the Participation of Institutional Investors in Corporate Governance was released at the conference.

The speakers of the roundtable discussion session included Chen Sanxia, Deputy Director of the Membership Service Department of AMAC, Zou Xinju, Director of Investor Relations and ESG Promotion Office of the Board Office of China Construction Bank, Chen Bo, Partner of Deloitte China and Dean of Corporate Governance Center of Deloitte China, Wei Yixi, Chief ESG Analyst of E Fund, and Qin Lin, ESG Analyst of Baillie Gifford. During the session, speakers shared their perspectives on how listed companies and institutional investors strengthen communication, interaction, and collaboration, forming a joint force to improve the quality of listed companies and promote the healthy development of China’s capital market.

Moving forward, CAPCO will continue to fulfill its role in self-discipline management and service, strengthen collaborative cooperation with market parties, build an effective communication channel between listed companies and institutional investors, and contribute to the formation of a sound corporate governance ecosystem and the promotion of listed companies’ high-quality development.