State-Backed Shareholder Activism
Chao Xi, "State-Backed Shareholder Activism", Revue internationale des services financiers / International Journal for Financial Services (2021: Issue 4) 44-51
The Chinese University of Hong Kong Faculty of Law Research Paper No. 2022-17
14 Pages Posted: 27 May 2022
Date Written: May 25, 2022
In the global quest for the improvement of institutional shareholder activism, an alternative approach has emerged and proliferated in East Asian jurisdictions: nonprofit organizations (NPOs) as activist investors. This Article examines the hitherto understudied case of China’s activist NPOs, in particular, the China Securities Investor Services Center (ISC). It examines the ISC’s wide array of activism and engagement activities and tactics, including China’s first opt-out securities class action, derivative action, public campaigns, naming and shaming, and behind-the-scene engagements. The research further shows that the ISC represents a new form of NPO activism: state-backed shareholder activism.
Keywords: Shareholder Activism; China
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