Corporations, Globalisation and the Law series
This book examines the post-listing evolution of the ﬁrst nine Chinese companies to be listed on the Hong Kong stock exchange in 1993–94. It also provides a comprehensive summary of the various law reforms which have formed the background to that evolution over the past 12 years. What emerges is not, as one might predict, a story of the tensions between Hong Kong-based western-derived common-law notions of the corporation versus Chinese socialist, collectivist state-controlled ideas of the corporation. Nor is the classical evolutionary model from law and economics demonstrated by, for example, selection and survival of only the more ‘eﬃcient’ reforms in corporate governance within H-share ﬁrms and the H-share market generally. Rather, corporate structures within the H-share market have been built upon those in existence in earlier times. Two sources of path dependence are identiﬁed and analysed. First, the corporate structure of individual H-share ﬁrms has emerged from the state-ownership structures of the Mao era, and their evolution has been determined by the tensions between the interests of diﬀerent parties involved in the ownership/management of the ﬁrm. Only some of these interests have had both incentive and power to (usually) impede or (less frequently) advance change. Second, as well as inﬂuencing the structure and business strategies of individual ﬁrms over which they have direct or indirect control, diﬀerent state agencies have also inﬂuenced the identity and timing of corporate governance reforms generally within the PRC. This story of path dependence sheds light...