Governance in Chinese companies raise concerns for investors

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As MSCI increases the weight of Chinese domestic stocks in its flagship emerging markets index, placing greater emphasis on due diligence and ESG factors is becoming more important. Environmental issues are being addressed by companies, mainly due to interest from China’s President Xi Jinping. However, there is no significant progress in corporate governance. This is partly due to the lack of an investor stewardship code that a majority of Asia-Pacific countries have already implemented.

The Financial Times, Siobhan Riding and Jennifer Thompson,  June 1st 2019