Corporate Governance for Listed Companies in China - Recent Moves to Improve the Quality of Listed Companies

The quality of China's capital markets cannot be improved without raising the quality of its listed companies. One problem with China's capital markets is that frequent scandals involving listed companies have created market uncertainty in the eyes of investors. This paper offers an explanation as to why corporate governance of China's listed companies has not functioned very well, and examines recent government moves aimed at improving that corporate governance, including administrative guidance, implementation of the new Company Law and Securities Law, reform of non-tradable shares, and group (all-affiliate) listings.