How the Party makes itself felt in the Chinese boardroom

The role played by the Communist Party committees inside Chinese companies remains murky. Some foreign investors don't even know that they exist.

With a legal basis in both Chinese company law and the constitution of the Communist Party of China, the role played by party organisations, or POs, remains murky to many foreign investors

Still others don't even know that they exist

That is the upshot of a report published on Tuesday by the Asian Corporate Governance Association (ACGA), which showed fewer than 3% of 152 foreign investors surveyed felt POs had a clear and accountable role in listed companies

Perhaps more worryingly, more than a fifth didn't even know that they existed

Sitting above the Board of Directors, these POs are embedded into Chinese management structures and officially represent the party co-founded by Mao Zedong that has...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222