Wednesday, January 10, 2007
IPO in China
Fred Tung over at The Conglomerate blog posted a piece about the success of the IPO by China's Industrial and Commercial Bank, which raised around $22 billion in a hugely oversubscribed IPO. Tung notes that this is despite the fact that China has a number of governance issues, several of which I've noted in previous posts such as the one on the OECD's report about corporate governance practices in China and the posting on the ISS 2006 Global Investor Survey.
The closely linked ownership structures of so many companies in China and the prevalence of state-owned enterprises has caused China's progress in the corporate governance area to creep along at glacial speed. Perhaps over time, the influence and expectations of foreign investors will prompt better disclosure and governance practices in China.