Improving Corporate Governance Structure for China’s Financial System Reform
Improving Corporate Governance Structure for China’s Financial System Reform
--CHANG Zhenming
President of China Construction Bank
Last year, Chinese government invested a total amount of USD 22.5 billion to China Construction Bank and Bank of China to add up to the their capital. In addition, a number of non-performing assets were separated and sold from the two banks. These measures marked the start-up of the joint stock reform of state-owned commercial banks in China.
1. A sound corporate governance structure is essential to joint stock reform of state-owned commercial banks
2. Reform of China Construction Bank in Its Corporate Governance Structure
The joint stock reform in China Construction Bank must be in line with the principles of “clearly established ownership, well defined power and responsibility, separation of enterprise from administration, and scientific management”.
3. Issues Concerning the Further Improvement of Corporate Governance
a) Relation between sound corporate governance and the market rules
b) Relation between sound corporate governance and corporate strategies.
c) Relation between sound corporate governance and traditional concepts
