Financial Times FT.com

Governance reputation hits China and India

By Andrew Wood in Hong Kong

Published: July 14 2008 03:00 | Last updated: July 14 2008 03:00

The poor reputation of China and Indiafor corporate governance, and recent market volatility, are frightening affluent expatriate and international individuals away from investing there. That is despite their bullish opinion of the two countries' economies, according to the fifth annual survey of such investors by Internaxx, the Luxembourg-based online share dealing service.

Forty-six per cent of 750 people surveyed worldwide thought China would be an economic superpower within five years; 69 per cent said they were "positive" about Chinese equities compared to 42 per cent in 2007. But just 36 per cent said they were invested in Chinese shares.

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