2022-11-25-富达投资-2022年中国公司投后管理报告_22页_6mb

Report Summary: Fidelity International China Stewardship Report 2022

This report, co-authored by Fidelity International and ZD Proxy Shareholder Services, examines the evolution of shareholder stewardship in China's capital markets. It highlights progress in areas like environmental, social, and governance (ESG) practices, institutional voting, and corporate governance improvements.

Key Trends in Shareholder Stewardship:

• Voting and Engagement: Shareholder participation in meetings and voting has increased, despite challenges such as controlling shareholders' dominance. Minority shareholders have started influencing corporate decisions through active voting, with ESG-related voting rising and regulations supporting better governance.
• ESG Focus: China has seen growth in ESG disclosures and reporting driven by regulatory policies, including new guidelines from the State Council and stock exchanges. Number of firms publishing ESG reports has tripled, though more work is needed.
• Institutional Involvement: Institutional ownership in A-shares has risen, with more asset managers joining sustainable investing programs like UN PRI. Voting rates for minority shareholders remain low in some areas, and environmental proposals are less common than in other markets.

Case Studies of Active Voting:

• Anti-Discrimination and Voting Against Unfair Practices: Fidelity and ZD advised against stock incentive plans that disproportionately benefited executives, citing lack of diversity and poor long-term incentives. This led to successful rejections in some cases.
• Questioning Unsolicited Donations: A clinic operator ignored shareholder calls for policy changes on donations, prompting minority shareholders to vote against proposals tied to donation policies, resulting in revised corporate behavior.
• Engagement for Better Emissions Disclosure: Fidelity advised cement company Anhui Conch to improve emissions reporting, leading to higher sustainability ratings and collaborative efforts to reduce carbon footprints.

Case Studies of Engagement:

• Sustainable Growth Initiatives: Anhui Conch improved ESG practices, such as setting emission reduction targets and enhancing disclosures, in response to Fidelity's engagement. China Resources Power similarly advanced renewable energy goals and ESG integration.
• Collaborative Engagement: Fidelity partnered with other asset managers on issues like decarbonization and infrastructure financing, underlining the importance of collective action to drive corporate change.

Conclusion:

The report notes that while stewardship is advancing through regulatory support, institutional engagement, and active voting, ongoing efforts are needed. Challenges include market volatility and disparities in ESG maturity. Overall, progress is encouraging, with small steps by investors, companies, and regulators contributing to healthier capital markets, paving the way for sustainable growth in China.