ABSTRACT
In this chapter we investigate the external determinants of corporate governance in China. Whereas in Chapter 5 we considered the problems of corporate governance from a micro and macro po int of view, in this chapter we specifically consider the role of regulatory bodies which impact on corporate governance. We read in Standard & Poor’s (2008) that China has made ‘enormous strides in company transparency over the past decade thanks to government and regulatory policies’ and here we analyse what was done. We study the role of two regulatory bodies, namely the CBRC and CSRC. As its name implies, the CBRC regulates all banks in China and the CSRC supervises all securities and listed companies. We also examine the Code of Corporate Governance, the rules for listing on the Shanghai Stock Exchange and how they impacted on the corporate governance of Chinese banks. Business networks are also considered for their impact on corporate governance and finally we consider the role of the CCP.
