Hong Kong Exchanges and Clearing Limited (HKEx) welcomes the overall corporate governance score of 8.3 out of a possible 10 from Standard and Poor's (S&P) which said a score of 8 reflected strong corporate governance processes and practices. The overall score of 8.3 matches the results of the previous evaluation, which were announced in October 2002.

S&P said HKEx's latest score and the updated analysis reflected a number of improvements in the areas of shareholder rights and stakeholder relations, as well as transparency and disclosure of financial and non-financial information. The rating agency said the overall assessment of the governance standards at HKEx remained positive.

S&P said its latest score for HKEx reflected some tightening of its scoring criteria and recent changes to its analytical methodology. Changes in methodology reflected the rapidly evolving nature of corporate governance global best practices and investor concerns over a broader range of governance issues, according to S&P.

"Our overall score of 8.3 out of 10 reflected our continuing efforts to maintain and build on the high corporate governance standards we have established," said Charles Lee, chairman of HKEx.

S&P said there was no evidence of any major conflicts around HKEx's dual accountability to both shareholders and the public at large. It added that neither did it believe HKEx has ever misused its regulatory influence to benefit its own financial performance.

The structure and effectiveness of the HKEx board is strong, according to the evaluation. In addition, S&P's analysis shows that board members are highly engaged in their roles and demonstrate the ability and willingness to think and act independently.

This is the third time that HKEx has invited S&P to give an independent assessment of its corporate governance processes and practices. "We are pleased by the outcome," said Mr Lee.  "We noted the comments in the S&P report and will take action in areas which may need improvement."

Click here for S&P's 2003 full analysis of HKEx's corporate governance processes and practices.