Hong Kong Exchanges and Clearing Limited (HKEx) welcomes the overall corporate governance score of 8 out of a possible 10 from Standard and Poor's (S&P), which said the score reflected strong corporate governance standards in international terms and HKEx's continuing commitment to improving its own corporate governance standards and setting a good example in leading the Hong Kong market in the area of corporate governance.

S&P, under the new rating scale which only shows scores in integers, assigned an overall score of 8 to HKEx and component scores of 8+, 8, 9 and 7+ out of a possible 10 for ownership structure and external influences; shareholder rights and stakeholder relations; transparency, disclosure and audit; and board structure and effectiveness respectively. Under the previous scale, HKEx had an overall score of 8.3 and component scores of 8.5, 8.0, 9.0 and 7.6 out of a possible 10.

S&P said that it confirmed HKEx's score at 8 in the context of rising global governance standards, a continued tightening of its corporate governance scoring criteria and a greater emphasis on board structure and effectiveness.

S&P's analysts noted several strengths in HKEx's governance profile, including its transparent ownership structure and increasingly dispersed ownership base, and the absence of any significant conflicts between commercial and public policy interests. They also found HKEx's shareholder rights and stakeholder relations remained a strong aspect of its governance structures and practices, the quality and timeliness of the Group's disclosure compared favourably with those of the world's best-governed institutions and HKEx's overall board structure and effectiveness were strong. The Board of Directors is diverse, highly skilled, experienced and engaged, and all directors demonstrate a high level of involvement, independent thinking and commitment to HKEx, according to S&P.

This is the fourth time that HKEx has invited S&P to give an independent assessment of its corporate governance processes and practices.

"We are pleased with our overall score of 8 out of a possible 10 and Standard and Poor's recognition of our efforts to strengthen transparency through quarterly reporting and the disclosure of senior executives' remuneration on an individual basis," said HKEx Chairman Charles Lee. "The results of Standard and Poor's evaluation reflect our commitment to ensuring HKEx's corporate governance standards are in line with the best international practices."

"We will study the analysis in the S&P report and examine any aspects of our organisation which may require further attention," Mr Lee added.

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