China's Best Managed Companies

Our annual poll of over 420 analysts and fund managers reveals which Chinese companies have the highest reputation among foreign investors.

CNOOC firmed as the investors' mainland corporation of choice as it improved on 2003's showing, winning five top positions. In addition to taking the best oil and gas company in Asia for the first time, CNOOC picked up the best managed company, best corporate governance, best investor relations and best CFO for Mark Qiu in 2004.

With a recently announced increase in net income of 18.2% to $3.4 billion and a bonus HK$0.18 special dividend to be released to shareholders, investor faith in the growth opportunities of CNOOC are bullish to say the least. This is the area of the poll in which investors believed CNOOC excelled in.

"CNOOC have the advantage of being located in a strategically located area and country with rapidly increasing wealth," concluded one investor.

"They have an outstanding management team who will jump at growth opportunities." However, results driven by high commodity prices and managerial strategy weren't the only motivating factor on the minds of investors.

Transparency of management and a committed investor relations department were two strong areas of improvement instituted by CNOOC over the past 12 months.

"We are seeing consistent openness of management and investor relations to field questions and provide answers," says one fund manager.

Fellow Beijing oil and gas rivals PetroChina pulled one feather out of CNOOC's cap, earning top spot on the most committed to strong dividend policy category. China Resources Enterprises' Francis Kwong and Global Bio-Chem's Vicky Yu disrupted an oil and gas clean sweep by sharing the best IR representative award.

Best Managed Company
Rank (2003 Rank) Company Votes
1 -1 CNOOC 48
2 (2=) China Mobile 31
3 (-) Chalco 25
4 -6 Denway Motors 18
5 (-) China Resources 14
5 (-) Huaneng Power 14
7 -5 Legend 12
7 (-) Global Bio-Chem Technology 12
9 (2=) TCL 11

 

Best Corporate Governance
Rank (2003 Rank) Company Votes
1 -4 CNOOC 33
2 -1 Legend 28
3 -2 China Mobile 21
4 -7 Sinopec 18
5 -5 PetroChina 16
5 (-) Huaneng Power 16
7 -3 TCL 14
8 (-) China Vanke 13
9 (-) China Resources Power 12
10 (-) China Telecom 11

 

Best Investor Relations
Rank (2003 Rank) Company Votes
1 -5 CNOOC 39
2 -1 Legend 26
3 (-) Chalco 23
4 -3 China Mobile 22
5 -6 PetroChina 16
6 -2 TCL 15
7 (-) Global Bio-Chem Technology 14
8 (-) China Vanke 10
8 (-) China Telecom 10

 

Most Committed to Strong Dividend Policy
Rank Company Votes
1 Petrochina 43
2 CNOOC 32
3 Huaneng Power 18
3 Legend 18
5 Sinopec 17
5 CITIC Pacific 17
7 China Overseas Holdings 10
8 Cosco Pacific 9
9 Zhejiang Expressway 8
10 Beijing Datang 7

 

Best Small Cap
Chinasoft

 

Best CEO
1st: Mark Qiu CNOOC
2nd: Huang Long Huaneng Power

 

Best IR Representative
1st: Francis Kwong China Resources
1st: Vicky Yu Global Bio-Chem Technology