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President Zhu Congjiu of the Shanghai Stock Exchange (SSE) spoke yesterday at the 6th China Securities Investment Funds Forum International that the SSE would introduce the Corporate Governance Sector and relevant indices. Listed companies can enter the Sector through their voluntary application. After that, they should pass the SSE's indicator examination and the social publication. Besides, the SSE will invite professional institutions and establish the Expert Consultative Committee to offer their opinions.
According to Zhu, upon 2-year rapid development, the total market capitalization of China's stock market has exceeded its GDP. However, corporate governance, a global issue, remains a problem to be solved by all markets, including those of the developed countries.
"The SSE has been researching on corporate governance, especially on problems under China's particular situations, and proposes a lot of measures so far." Zhu said.
"We plan to set up the SSE Corporate Governance Sector this year." According to Zhu, establishment of the Sector involves several principles.
"The first is the voluntary application. Listed companies should be listed for 12 months and meet the 7 preconditions for application."
"We will make social publication after receiving listed companies' application. Meanwhile, we will invite professional institutions to offer their opinions." Zhu said.
