Watch for corporate governance reforms in Asia’s biggest economies
Goldman Sachs says reforms in Japan, South Korea and China could unlock greater shareholder returns
A Goldman Sachs report on Tuesday speculates that possible corporate restructuring in China, Japan and South Korea could unlock greater shareholder returns, reports Bloomberg.
The report cites Japan’s Sumitomo Mitsui Financial Group, South Korea’s Hyundai Motor Co and Samsung Electronics, and Shanghai-based Baoshan Iron & Steel Co as firms likely to see some form of restructuring.
Japan’s Government Pension Investment Fund has sent signals it is putting its weight behind Prime Minister Shinzo Abe’s effort to reform Japanese firms. In South Korea, reforms that look likely on the heels of former President Park Geun-hye’s corruption scandal could see help from the country’s National Pension Service to push through reforms.
As for China, state-owned enterprise reform is likely to see progress as the country continues efforts to cut industrial overcapacity.