The basic goal of corporate governance is to protect the rights and interests of investors, particularly the small and medium investors, and the SSE expects all listed companies to give top priority to shareholders' rights and interests in their daily operation, said President Zhang Yujun of the Shanghai Stock Exchange (SSE) at the 8th China Corporate Governance Forum on December 18 while presiding over the session themed "corporate control market and industrial structure adjustment".
Zhang stated that there are three reasons for unswervingly perfecting the control market and strengthening the corporate governance. The first is to boost the transformation of China's economic growth mode to echo with the key tone of China's national economy of "adjusting the structure, expanding the internal demand and benefiting the people's livelihood". It is the basis goal of perfecting the corporate governance and improving the merger market efficiency. The second is to improve the basic function of China's capital market to enhance its capability to serve the economy and elevate its competitiveness. The third is to cooperate with the strategy of financial opening-up.
Zhang held that the gap between the China's capital market, in its process of maturity and opening-up, and the western markets is not large in terms of scale. However, its capacity to serve the economy, its function, efficiency and competitiveness lags behind, which are embodied in merger, acquisition and restructuring or control market and corporate governance. Therefore, enhancing corporate governance and perfecting merger market is a crucial move to accelerate the maturity of China's capital market and cope with the development of the international capital markets.
Zhang pointed out that under the current circumstances, special attentions shall be paid to the following aspects in the process of boosting corporate governance and perfecting merge market: first, to perfect the basic system of corporate governance; second, to advance the construction of directorate; third, to tighten the requirements for information disclosure to improve the transparency of listed companies; fourth, to strengthen the construction of control market; fifth, to intensify the construction of independent director and secretary to directorate systems; sixth, to reinforce the supervision over the corporate governance, including cracking down on insider dealing, financial cheating and market manipulation through collusion of related parties on the same market; seventh, to enhance the protection and management of investors as the basic goal of corporate governance is to protect the rights and interests of investors, especially the small and medium investors; eighth, to facilitate the formation of social consensus on corporate governance by strengthening the fundamental construction and research of corporate governance, doing a better job in academic exchange on corporate governance, propelling the training on corporate governance and popularizing the ABC of corporate governance.