An increasing number of Hong Kong companies are seeking independent corporate governance ratings to increase their attractiveness to international investors. Ratings agency Standard & Poor's (S&P) last year began making detailed studies for Asian companies of their compliance with internal-level corporate governance criteria.
Like corporate debt ratings, companies actually pay to be rated and agree to undergo a rigorous investigation of their internal practices.
Only one company in Hong Kong - the Hong Kong Exchanges and Clearing, which runs the Hong Kong Stock Exchange - has agreed to make its corporate governance rating public.
But S&P says there is a small but growing number of other local publicly listed companies (including some mainland firms) that have also sought detailed corporate governance ratings to help with their credibility with international investors, although they have not chosen to disclose them publicly.
Some are disclosing them to international investors, while others are seeking reviews to improve their internal procedures, knowing the issue of corporate governance is set to come under increasing public scrutiny in the future.
