Improving corporate governance in state owned enterprises in China: which way forward?

This article discusses corporate governance in China. It outlines the basic agency problem in Chineser listed companies and questions the effectiveness of the current mechanisms emplopyed to improve their standards of governance. Impotantly it considers alternative means through which this task must be tackled. It concludes that regulators in China must construct a corporate governance model which is compatible with its domestic setting and not rush to adapt governance initiatives modelled on those in cultures which are fundamentally different in the hope of also reproducing their success.