Some 250 listed companies in Hong Kong have yet to add at least one woman to their boards even as a deadline to comply with the exchange’s rules is only a month away, according to the Hong Kong Exchanges and Clearing (HKEX).
“The deadline is the end of this year, so the next few weeks will be very busy for my team to call the remaining non-compliant companies to make sure that they bring women on to their boards,” CEO Bonnie Chan Yiting said on Wednesday.
The compliance rate, however, has significantly improved since the requirment was introduced in 2022, she said, noting that the number of Hong Kong-listed companies with an all-male board has decreased by nearly three quarters.
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In 2022, only 16 per cent of company directors were women, and 11 per cent in 2018.
“Through two years of encouragement and coaching, that [non-compliant] number has now dropped to about 250 [from 800],” Chan said at the Greater Bay Area Fintech Talent Summit, organised by Bloomberg, the Hong Kong United Youth Association and the Hong Kong Monetary Authority.
Hong Kong Exchanges and Clearing, the operator of the local stock exchange, requires all companies to appoint at least one woman on their boards by the end of 2024. Photo: Edmond So alt=Hong Kong Exchanges and Clearing, the operator of the local stock exchange, requires all companies to appoint at least one woman on their boards by the end of 2024. Photo: Edmond So>
The summit capped a one-month programme that gives university students an opportunity to get industry experience with a focus on fintech positions in the Greater Bay Area.
The HKEX introduced the rule two years ago, requiring all companies to appoint at least one woman on their boards by the end of 2024. A total of 2,623 companies were listed on the exchange at the end of October, according to exchange data.
“My view is that once we’ve started it, I don’t think you need to keep raising the bar in terms of managerial requirements, [as] listed companies should see the benefits readily and raise the percentage voluntarily,” she added.
While Hong Kong has made it mandatory to have at least one woman on a company board, it lags many markets including Norway, where at least 40 per cent of either gender sits on a listed company’s board.
Chan is the first woman to run the local stock market after assuming the CEO role in March. She is also the first internally promoted CEO, replacing Nicolas Aguzin, who decided not to renew his contract.
