The book's text is adapted from a conference organized by CIPE and CCCG in Beijing, November 1-2, 2001.

China has been the focus f attention by other East Asian countries after accession to the WTO, and this event was the first high-level international conference in Beijing on the issue of corporate governance reform in East Asia. It was also the first time in China that a think tank sponsored an exchange of comparative studies on the issue of corporate governance in the region, highlighting the importance of company disclosure and transparency and stronger protection of public and minority shareholders in China's listed firms.

The conference gathered together distinguished government officials, CEOs and scholars speakers from around the Asian region to deliver speeches and exchange ideas. The program was designed to promote the future development of theoretical and practical thinking on this topic in China, and help to develop a domestic business constituency in favor of reform and greater economic transparency.

The 500-page volume, published in September 2002, features a wide range of articles in both English and Chinese on corporate governance and the link between corporate accountability and rule of law, and is the first original text to be published in China on this important topic. The concept of corporate governance is a relatively new one in China, which faces a variety of problems as it continues its transition to a market economy.

One major problem is the over-concentration of investment capital in the hands of state-owned enterprises. Of the more than 1,100 firms listed on the exchanges, almost half are controlled by their largest shareholder. A related problem is the lack of definition of property rights in firms that are publicly listed but still state-controlled.

China's current focus remains on these listed state enterprises, but the government now must cope with how to promote accountability and implement disclosure requirements among private firms as well. Private businesses, which now account for between 30 and 40 percent of national industrial output, need good corporate governance as well.

Although only a handful of China's listed firms are private, this number is now growing as China continues to reform its securities markets and ease quotas that restrict entry. Still largely shunned by China's state-owned banking system, China's private entrepreneurs will increasingly require access to domestic and foreign equity investors in order to advance from microenterprises to mature corporations.