Investing Process – Ownership Concentration and Corporate Control in Chinese Listed Companies

May 20, 2014 Leave a comment

Ownership Concentration and Corporate Control in Chinese Listed Companies

Wenge Wang 

University of Auckland – Faculty of Law
January 27, 2014
Wenge Wang, Ownership Concentration and Corporate Control in Chinese Listed Companies, 11 (1) US-China Law Review, 57-93 (2014)

Abstract: 
This paper investigates the ownership concentration and corporate control of Chinese listed companies in the period of 2003-2011. The purpose is to examine the practical effect of the share structure split reform in 2005 and explore the actual outcome of the reduction of state shares of Chinese listed companies. Specifically, ownership structure, shareholding concentration, shareholder identification and corporate control pattern are identified to serve for this purpose.

Statistics, calculated on data from the CSMAR database, are used to elucidate and support the investigation. The evidence presented in this paper shows that state shares, though greatly reduced in the reform, have still been the main types of shares in the mainstream of Chinese listed companies. This suggests that the ownership concentration and corporate control of Chinese listed companies have not been fundamentally changed even years after the reform.

 

Filed under Investing Process

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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