China-listed companies to be rated on governance

China Securities Index Co (CSI), the country's securities index provider, has announced plans to launch a new index rating the corporate governance at China-listed companies, Xinhua reported (in Chinese). The new index, which is expected to be launched at the Shanghai Stock Exchange on January 1, 2008, is aimed at encouraging publicly traded mainland companies to improve governance practices, and marks the first time China has instituted a criterion for evaluating corporate governance. The index will also provide mutual fund companies with an underlying index for new products, according to the CSI.