Hong Kong Exchanges and Clearing Limited (HKEX) has announced ground-breaking guidance for companies seeking to list on The Stock Exchange of Hong Kong (SEHK), which includes new measures to disclose board gender diversity information.
The Exchange has revised its Guidance Letter HKEX-GL86-16 to require additional information from companies on their board diversity policy, including how they plan to achieve gender diversity, particularly those with all-male boards. According to the latest Women on Boards report from MSCI ESG Research, one-third of all listed companies in Hong Kong do not have a single woman on their boards.
GOOD NEWS FOR WOMEN ON BOARDS
These new measures will force companies with an all-male board wanting to list on the SEHK to provide information on how and when they will achieve board gender diversity, with details on how they plan to develop a pipeline of female directors.
It’s certainly good news for women on boards, as these new measures are aimed at improving board gender diversity in one of the world’s top IPO markets.
“Promotion of board diversity is a key focus of the Exchange and an area we are committed to continuing to develop,” stated David Graham, Head of Listing, HKEX. “Board diversity promotes effective decision-making and enhances corporate governance. The consideration of diversity is becoming an increasingly important factor when investors make their investment decisions.”
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