China’s Corporate Governance and Reforms

I. IntroductionSince 1978, China’s economic reforms have called for an incentive mechanism to beincorporated in the state-owned enterprises (SOEs), while the reforms have demonstratedconsiderable success. In the early 1990s, the Chinese government took further steps andbegan to list SOEs on stock exchanges to raise external capital and improve their efficiency.Corporate governance still remains an important issue in China as shown by the largenumber of corporate failures and scandals in r…