The Shanghai Stock Exchange (SSE) and China Securities Index Co., Ltd. (CSI) have recently elected a new Expert Consultative Committee for SSE Corporate Governance Sector and re-evaluated the Sector. The new 11-member Committee, with Hu Ruyin taking the position of Chairman, consists of domestic experts and renowned scholars in the field of corporate governance research. Established in 2007, the Committee has devoted itself to providing consultation services and suggestions for decision-making for the appraisal of the SSE Corporate Governance Sector.
Meanwhile, the Committee re-assessed the SSE Corporate Governance Sector. In line with the “Appraisal Measures of SSE Corporate Governance Sector”, the SSE Corporate Governance Sector is finally formed through voluntary application of listed companies, public-opinion solicitation, comments by consultancies, primary selection and examination by the expert consultative committee. The Sector is re-appraised from May to June every year. In the re-evaluation, stocks in the 19 companies including China Eastern Airlines Corporation Limited and Bank of Beijing Co., Ltd. were added to the Sector, while stocks in the 6 companies including Guangxi Wuzhou Zhongheng Group Co., Ltd. and Jiangsu Kanion Pharmaceutical Co., Ltd. were deleted. After the adjustment, the number of constituents of the Sector increases from 264 to 277.
According to the index rule, the SSE Corporate Governance Index, the SSE 180 Corporate Governance Index and the SSE Social Responsibility Index are adjusted accordingly upon the adjustment to the SSE Corporate Governance Sector. The constituents of the SSE Corporate Governance Index are made up of all the stocks in the SSE Corporate Governance Sector. Ten constituents of the SSE 180 Corporate Governance Index are replaced by adding stocks in the companies such as Bank of Beijing Co., Ltd. and China Oilfield Services Limited and deleting stocks in the companies such as Guangxi Wuzhou Zhongheng Group Co., Ltd. and Shanghai Electric Group Company Limited. Besides, ten constituents of the SSE Social Responsibility Index are replaced by adding stocks in the companies such as China Pacific Insurance (Group) Co., Ltd. and China State Construction Engineering Corporation Limited and deleting stocks in the companies such as Jiangsu Kanion Pharmaceutical Co., Ltd. and China Spacesat Co., Ltd. The adjustment will come into effect on July 2, 2012.
As of June 8, the total market capitalization of the new constituents of the SSE Corporate Governance Index, the SSE 180 Corporate Governance Index and the SSE Social Responsibility Index had been RMB10,047.1 billion, RMB8,577.7 billion and RMB4,974.9 billion, accounting for 64.32%, 54.92% and 31.85% of the total market capitalization of A shares on the SSE, respectively.
Twelve institutions that participated in the appraisal of the SSE Corporate Governance Sector are Guotai Junan Securities Co., Ltd., Shenyin & Wanguo Securities Co., Ltd., China International Capital Corporation Limited, Haitong Securities Company Limited, Fortune SGAM Fund Management Co., Ltd., AEGON-INDUSTRIAL Fund Management Co., Ltd., E Fund Management Co., Ltd., CCB Principal Asset Management Co., Ltd., Bank of Communications Schroder Fund Management Co., Ltd., Research Center for Financial Engineering of Nanjing University, Pengyuan Credit Rating Co., Ltd. and China Chengxin Securities Rating Co., Ltd.
The List of Members of The New Expert Consultative Committee for SSE Corporate Governance
Name |
Title |
Hu Ruyin |
Director of the Capital Market Institute of the Development Research Center of the Shanghai Stock Exchange |
Chen Qiwei |
Board Chairman of Asia Business Consulting Co., Ltd. and Professor of Shanghai Jiao Tong University |
Li Xindan |
Dean and Professor of the School of Management and Engineering of Nanjing University |
Liu Zhong |
Deputy General Manager of China Securities Index Co., Ltd. |
Lu Tong |
Director of the Corporate Governance Center of the Chinese Academy of Social Sciences |
Lu Hongbing |
Director of Grandall Legal Group (Shanghai) |
Wang Wei |
Chairman of the China Mergers & Acquisitions Association |
Xie Rong |
Vice President of Shanghai National Accounting Institute |
Bu Deying |
Deputy Director of the Economic Forecasting Department of the State Information Center |
Yu Lifeng |
Chief Accountant of the Foreign Economic Cooperation Office of the Ministry of Environmental Protection |
Zhang Luyang |
Professor of the School of Economics of Fudan University |