On June 25, 2008, China Securities Regulatory Commission (CSRC) published Announcement  No. 27 to establish key tasks and requirements for domestic and foreign-invested enterprises listed in China to improve their corporate governance practices within specific timelines. According to Chairman of the CSRC Shang Fulin, the measure is part of the government’s efforts to ensure the stable development of Chinese capital markets and to prevent instability in the domestic stock market.
Many Chinese public companies began to develop a raised awareness of corporate government practices following a 2007 program initiated by the CSRC. However, this program suffered from certain flaws, such as a lack of independence for public companies resulting from improper intervention by controlling shareholders, an unclear scope of responsibility for the independent director, and the treatment of the professional committee under the directorate as a formality. To address these weaknesses, the CSRC will continue its efforts to urge public companies to improve corporate governance by stricter responses to market manipulation and false information disclosure going forward.