In this article:

To many outsiders, Chinese equity investing might conjure up images of a huge, freewheeling market where millions of retail investors revel in speculation and sustainability is an alien concept.

But developments on the ground in China show how stereotypes like this are swiftly becoming outdated. China’s markets have been changing shape over the last decade, as institutional influence expands in the onshore market and foreign investors pile in. Indeed, the clear picture that emerges from Fidelity International’s inaugural China Stewardship Report is one of steady progress across the board when it comes to investment stewardship in China.

The findings that follow are based on a proprietary study conducted for Fidelity International by ZD Proxy Shareholder Services. The study encompassed 6,922 shareholder meetings and 43,280 resolutions made from 2017-2019 by 676 companies that were or have been constituents of the MSCI China A Onshore index during this period (including 79 A-share companies with dual H-share listings in Hong Kong).

The paper consists of three main sections: 1) an overview of voting and engagement activities among investors in China including how these have evolved over the years; 2) selected China case studies that demonstrate the power of voting and engagement in protecting and potentially increasing the value of an investment; and finally 3) a question-and-answer guide to help investors navigate the complex maze of onshore shareholder voting.

To access the full paper as a PDF document please click here. 

Fidelity International

Fidelity International

Personal Investing