Global investor concerns about the reliability of oversight of Chinese companies following the problems at Evergrande are further validated by this review of Chinese banks and insurance firms, sectors that should be at the top of the list for security.
The China Banking and Insurance Regulatory Commission (CBIRC) announced on November 12 that some of the organisations involved in its annual evaluation of banks and insurance firms are failing to meet corporate governance guidelines including shareholders governance, risk control and board governance.
This year, 1,857 companies participated in the corporate governance regulatory assessment (1,673 commercial banks and 184 insurers). The CBIRC ratings placed firms into A, B, C, D and E groups.
The breakdown by institution saw the largest number 1,100 rated as C (pass), representing 59% out of the assessed firms, followed by 366 B (fine)-rated firms (19.7%). A total of 253 institutions were rated D (weak), representing 13.6% and 138 institutions were rated E (poor) (7.4%). No institutions got an A rating, denoting excellent.Chinese banks and insurers are failing on corporate governance | Asset Owners | AsianInvestor