Below are key takeaways from ISS’ recently released 2025 China Season Review. The full report is available to institutional subscribers by logging into ProxyExchange then selecting the Knowledge Center and its Library tab and to corporate subscribers by logging into Compass then selecting Governance and the Governance Library or Governance Exchange tab.
- Increased Overseas Listing dominated by H Share Listings: The number of companies listed in mainland China proposing dual listings overseas has surged to a five-year high, primarly driven by regulatory support, renewed confidence in domestic capital markets, and geopolitical tensions.
- Reinvigorated Major Asset Restructurings Market in China: Underpinned by increased market confidence and a more supportive regulatory environment, major asset restructurings among listed companies in China are expected to increase throughout the remainder of 2025 and beyond.
- Introduction of Reporting Standards for Sustainability Reports: To establish a standardized reporting framework, the Guidelines for the Preparation of Sustainability Reports for Listed Companies were published to outline the contents to be included in corporate sustainability reports. Furthermore, the Corporate Sustainability Disclosure Standards No. 1 – Climate (Trial Implementation) (Draft for Comment) was drafted as part of the long-term effort leading to the formation of a standardized reporting framework for companies by 2030.
- Abolishment of Supervisory Boards and Introduction of Employee Representative Directors: To ensure conformity with the new Company Law and Implementation Regulations, the CSRC has finalized corresponding amendments to existing regulations, including the formal abolition of supervisory boards at listed companies and the inclusion of employee representative directors on the board of directors. All listed companies must complete this governance transition by Jan. 1, 2026.
- Revised Measures for Enhancing Information Disclosure: The revised measures will be effective from July 1, 2025, requiring greater transparency from unprofitable companies, tightening controls on the outsourcing of disclosure services, permitting limited off-hours announcements and raising the penalty limit for breaches to CNY 100,000.
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By:
Ada Lu, Harry Liu, Harry Sun, Mengzhen Zhang, Yuan Yao, Elodie Zeng, Rui Ning Cheng, Xiao Xie
