On June 16-18, the "2022 ifeng Finance (Summer) Cloud Peak Meeting" was held, which was hosted by IFeng.com and undertaken by Ifeng.com Finance and China Corporate Governance 50 Forum as a strategic academic partner. With the theme of "Tomorrow's World", nearly 60 top guests from the political and business circles at home and abroad will be invited to interpret the world under great changes and the road to China's economic growth.

In this summit,the 2022 Shanghai and Shenzhen 300 Index Corporate Governance Sub-index ranking list jointly released by the China Corporate Governance 50 Forum (CCG50) and IFeng.com Finance and Economics is also in preparation for a blockbuster announcement in the coming days.

At the launch ceremony, as one of the sponsors of the joint release, Professor Gao Minghua, executive director and secretary general of the academic Committee of the China Corporate Governance 50 Forum, attended the Yunfeng Meeting in person, and Zhang Tao, director of IFeng.com financial channel, attended and witnessed this weighty moment.

The year 2022 is the second year of the implementation of the National 14th Five-Year Plan and the first year of the second centennial goal.Under the threefold pressure of demand contraction, supply impact, and expected weakening, our economic development is facing the key year on how to implement proposed "stable word, forge ahead steadily" in the government work report, which has become the biggest test in front of the whole market.

In this context, as the main body of the market economy, both state-owned enterprises as the "ballast" of the national economy and private enterprises as effective strength need to base themselves on the new development stage, focus on high-quality development, enhance the vitality of development and the resilience of innovation, and make greater contribution to stabilizing the broader economy.

As Zhang Tao, director of Ifeng.com, said in his speech, "The development of enterprises has been the foundation for China's economy to become a miracle of world economic history in the past decades. It is a powerful booster to attract employment and increase disposable income of residents. It is also related to the confidence of the Chinese economy to successfully transform and upgrade through the complicated environment."

Therefore, for an enterprise, especially for listed enterprises, it is inevitable to explore a high quality, stable and new development road.And if an enterprise wants to build its competitiveness in the market economy, it cannot do without good corporate governance.

Perfect corporate governance is often the guarantee of a company's evergreen foundation, but also an important support for the stable and healthy development of the capital market.From this perspective, a comprehensive evaluation of the governance status of listed companies is of vital practical significance to the enterprises themselves, the industry and the market.

Based on this, in the first half of this year, the China Corporate Governance 50 Forum (CCG50) and IFeng.com Finance jointly launched a selection of the CSI 300 index stocks in terms of corporate governance and finallyreleased in the "2022 Phoenix net finance (summer) Yunfeng meeting".

Professor Gao Minghua introduced the evaluation. The 2022 CSI 300 Corporate Governance Sub-Index List is based on the CSI 300 index list, excluding companies that have been listed for less than a year to form an assessment list covering 296 companies.Through the scientific design of the index system and the collection of a large number of data, we finally obtained the rights and interests of small and medium investors protection index, board governance index, entrepreneur (general manager) ability index, financial governance index and voluntary information disclosure index, and on this basis formed the corporate governance index.

Why the CSI 300 index companies as the research object?

In this regard, Professor Gao Minghua pointed out that the CSI 300 index is composed of the most representative 300 securities with large scale and good liquidity in the Shanghai and Shenzhen markets.Since its launch in 2005, the index has focused heavily on the short-term performance and market value of the companies in its stock selection, so the CSI 300 index is also regarded as a benchmark of investment orientation by institutional investors and even the whole market. The frequency of semi-annual adjustment can also make the CSI 300 index timely and accurately reflect the overall performance of securities listed on the Shanghai and Shenzhen markets, so the index is also known as a "barometer" reflecting the overall trend of the two markets.

As we all know, corporate governance index is an effective tool to provide risk warning and guide investors to make long-term value investment.So, does the corporate governance of the CSI 300 index also serve as a benchmark for long-term investment orientation?

In order to answer this question, the "2022 CSI 300 Index of Corporate Governance Sub-Index List" came into being after comprehensive analysis and multi-angle comparison.

Specifically, the protection index for the rights and interests of small and medium investors has 4 first-level indicators (namely, the right to know, the right to make decisions and supervise, the right to profit and the environment for safeguarding rights) and 36 second-level indicators. The Board Governance index includes four first-level indicators (board structure, independence of independent directors, board behavior and director incentives and constraints) and 38 second-level indicators.The Entrepreneur (General Manager) Capability index is designed with four first-level indicators (human capital, network, social responsibility and strategic leadership) and 35 second-level indicators. Financial governance index has 4 first-level indicators (financial power allocation, financial control, financial supervision and financial incentives) and 31 second-level indicators. The voluntary information Disclosure index is designed with 4 first-level indicators (governance structure, governance efficiency, stakeholders and risk control) and 31 second-level indicators.Each index is calculated by scientific method on the basis of the above indexes. It is compared and analyzed from the perspectives of overall, industry, region, holding type and listed sector, etc. Finally, the overall index of corporate governance is obtained after comprehensive measurement.

According to the analysis of the five categories of corporate governance index and the total index, Professor Gao Minghua believes that the CSI 300 index also plays a leading role in corporate governance.But this leading role is still relatively limited, there are still some governance risks, and even some companies have been ST after entering the CSI 300. This is mainly because the selection of CSI 300 samples focuses on short-term performance and market value, and little consideration is given to corporate governance, which will affect the long-term development of companies. Therefore, investors should still be cautious when making long-term investments in some CSI 300 companies.

As an unshakable foundation for enterprise reform and high quality development, corporate governance is an eternal topic.Founded in 2020, the China Corporate Governance 50 Forum is a non-profit high-end think tank platform for corporate governance initiated and established by more than 50 corporate governance experts from the political, academic and business circles.

According to the data, as a platform for the exchange of corporate governance ideas, the China 50 Forum on Corporate Governance is committed to ways to realize the value of corporate governance, such as high transparency, clear accountability, effective supervision and respect for stakeholders.Through the classified evaluation of the governance level of Chinese listed companies, the Chinese listed company governance classification index and listed company quality index are formed to guide enterprises to accurately improve the corporate governance level.

The release of the "2022 CSI 300 Index of Corporate Governance Sub-Index ranking" is the second cooperation between the China Corporate Governance 50 Forum and Phoenix Finance. The purpose is to jointly promote the incorporation of corporate governance (including social responsibility) into the selection criteria of CSI 300 stocks through the classification and selection of CSI 300 companies by both parties. The purpose is to jointly promote the incorporation of corporate governance (including social responsibility) into the selection criteria of CSI 300 stocks through the classification and selection of CSI 300 companies by both parties.

Looking ahead, Zhang Tao, director of Ifeng.com Financial Channel, said the list is just the beginning. ""In the future, we will focus on this list and help the market, investors, intermediaries and listed companies to have a more intuitive understanding of 'what is a high-quality development enterprise' through a variety of ways such as index release, tracking reports, salon seminars, think tank visits and solutions.And through the demonstration role of benchmarking, we aim to promote the improvement of the corporate governance level of China's listed companies and the reform of China's modern enterprise system."

Provided by Research Center for Corporate Governance and Enterprise Development

Edited by Gao Minghua

Reviewed byCai Hongbo