Governance Briefing — January 5, 2022
China's securities regulator released a revised Corporate Governance Code for listed companies, expanding board accountability for strategy, risk, and investor engagement.
Executive briefing: On 5 January 2022 the China Securities Regulatory Commission (CSRC) published the revised Code of Corporate Governance for Listed Companies. The update emphasises board responsibility for innovation, investor relations, and stakeholder communication while enhancing internal control and compliance expectations.
Key governance signals
- Strategic oversight. Boards must lead long-term strategy, digital transformation, and innovation investment while linking governance metrics to performance assessments.
- Investor relations. Listed companies are required to strengthen investor relations management, implement regular briefings, and disclose engagement outcomes.
- Internal control and compliance. The code reinforces risk management, internal audit, and compliance officer responsibilities, instructing boards to monitor whistleblowing and accountability investigations.
Action checklist
- Align board annual agendas with the revised code, covering innovation strategy, investor relations, and compliance reviews.
- Expand investor communication programmes with documented meeting schedules, Q&A repositories, and disclosure of material engagements.
- Review internal control frameworks to confirm independent audit functions, compliance escalation procedures, and remediation tracking.
Sources
- CSRC announcement of the revised Corporate Governance Code
- Full text of the Corporate Governance Code for Listed Companies (Chinese)
Zeph Tech helps China-listed issuers align board charters, investor relations playbooks, and compliance monitoring programmes with the 2022 CSRC governance code.