Jan 3, 2021
In this episode, Lyndsey talks with Vivian Lin, partner and
portfolio manager of William Blair’s China A-Shares Growth strategy
and a global research analyst covering Chinese equities.
Their conversation starts with understanding the importance of
China corporate governance for investor side. And the status of
China corporate governance and ESG trend.
They then dive into China corporate governance key risks. Vivian
shares how she handles these risks when she invests in China
companies from selecting process and due diligence process.
They continue the conversation with China SOEs corporate
governance. Vivian explains the different ownership of China SOEs.
She reviews the key risk of China SOEs, and the societal
contribution SOEs made to China society.
They closed the first part of the conversation by Vivian sharing
her experience regarding things global investors do not know but
should know about China SOEs. Vivian shares her experience working
with China SOEs with professional management team, and her opinion
regarding the importance of CEO compensation in China SOE
reform.
Conversation Highlights (with timestamps)
- China companies’ corporate governance so important to global
investors? (2:30)
- Main CG risks of Chinese CG (7”00)
- Equity share pledge and why it’s so prevalent in China?
- Chinese market constrains – leading business is not market
driven
- What’s the break points of investment for China companies?
- Accounting fraud issue of China companies and companies from
other market
- Investor due diligence key elements
- Different China state-owned enterprises (SOEs) (12:30)
- Different ownership of SOEs in China
- Central government owns traditional Industry (infrastructure,
energy, material) – central government owned
- Provincial, city level SOEs New economy (consumption, service,
technology) – with more professional management team
- Specific Risk of China SOEs (17:00)
- Some SOEs might have better CG structure due to government’s
duty and intention
- Minority investors influence to SOEs are limited - How to
handle it?
- What western investors need to know about China SOEs (23:00)
- Things investors do not like to see
- What good SOEs in China look like with professional management
team?
- CEO Compensation in China SOEs – SOEs reform focus
Guest Contact Information
Vivian Lin
Email: linthurston@gmail.com
Publication:
Vivian’s blog site on William Blair:
https://active.williamblair.com/author/vivian-lin-thurston/
“Sustainable Trends Supporting China A-Shares”
https://active.williamblair.com/global-equity/vivian-lin-thurston/sustainable-trends-supporting-china-a-shares/?et_rid=0030z00002PDYkRAAX&et_sid=526962&utm_source=MC_2&utm_medium=Email&utm_campaign=&utm_content=https%3a%2f%2factive.williamblair.com%2fglobal-equity%2fvivian-lin-thurston%2fsustainable-trends-supporting-china-a-shares%2f
“Three Themes in Emerging Markets”
https://active.williamblair.com/global-equity/todd-mcclone/three-themes-in-emerging-markets/?et_rid=0030z00002PDYkRAAX&et_sid=509978&utm_source=MC_2&utm_medium=Email&utm_campaign=&utm_content=https%3a%2f%2factive.williamblair.com%2fglobal-equity%2ftodd-mcclone%2fthree-themes-in-emerging-markets%2f
“China Backdrop: Fundamentally and Technically Positive”
https://active.williamblair.com/global-equity/vivian-lin-thurston/china-backdrop-fundamentally-and-technically-positive/