China Construction Bank (CCB) has been awarded yet another honour recently.  In an independently conducted selection programme, it has won the “2007 Best in Corporate Governance Enterprise” award and is listed as one of the best governed enterprises in China.  Details of the selection results have been published in the April 2007 issue of The Asset magazine.

According to the magazine, to win the Best in Corporate Governance title, all 60 Asian companies must demonstrate that they have a well managed corporate culture.  This includes a vigorously implemented corporate governance system, a high degree of transparency and a commitment to look after the interests of investors and shareholders.  The main reason why CCB has outshone most of the candidate companies in the selection programme is that, in its successful shareholding restructuring programme, it has improved on its corporate governance framework.  In addition, the admitting in of strategic investors has also helped CCB entrench its transformation.  In managing its business, CCB has, on the one hand, quickened the pace of reconfiguring its business structure to effect strategic restructuring.  On the other hand, it has been improving its management system.  In addition to the comprehensive establishment of a vertical risk management system, CCB has also been initiating and nurturing a people-orientated corporate culture in order to raise its management standards.

Coincident with the objectives of the selection programme is the fact that CCB attaches a great deal of importance in making the undertaking of social responsibility part of its development strategy.  To fulfil its corporate responsibility of giving back to society, CCB has been actively participating in such functions as rebuilding of disaster areas, sponsoring the 2007 Special Olympics, establishing the CCB Caring Foundation and contributing to the construction of “Project Hope” primary schools.

The Asset’s selection for “Best in Corporate Governance Enterprises” took place from September 2006 to March 2007.  During the six-month investigation period, nominated companies had to fill out a questionnaire describing the principles and actual practice they had adopted in managing their businesses.  Voting for the Best in Corporate Governance award was then carried out by institutional investors.  Finally, The Asset interviewed the management of the nominated companies to gain an understanding of their management policies.

The Asset magazine is a renowned English financial business monthly in Asia.  Founded in 1999, it has an average monthly circulation of 17,302 (as of December 2006), of which 83% is distributed in Asia.