Deloitte has launched a corporate governance
research and information centre that focuses on Chinese governance
practices.

The department is similar to Deloitte’s global
corporate governance centre and will also serve as a sponsor of
governance events and roundtables for directors, executives and
investors throughout China.

“That China is ready for such a centre is a
strong signal that Chinese managements and investors alike are
demanding improvement in how companies are managed and run. In the
wake of the recent financial crisis, governance questions are more
important than ever,” said Danny Lau, a national managing partner
in Deloitte China’s enterprise risk services practice.

Room for improvement

At the launch, the centre released a report
about the state of corporate governance among listed companies in
Mainland China.

The report, A long path to better
corporate governance,
surveyed 100 companies and found that
Chinese enterprises understand the importance of corporate
governance but there is room for improvement, in particular in
related party transaction and information disclosure.

To raise corporate governance standards, 84
percent of companies said that improving internal control is an
effective measure, while 64 percent of the companies said it was
important to establish a comprehensive risk management system.
Despite this, only 16 percent of companies had established a risk
management committee, the report found.