Board structures at Chinese companies can lead to “confusion, ambiguity and potentially ... undermine the board of directors”, according to a study of the corporate governance risks faced by investors in China.

The report by Risk Metrics, which advises more than 2,000 institutional investor clients, said factors including China’s two-tier boards and a well-crafted but untested regulatory regime continue to make the country a risky destination for overseas investors, especially when compared with Hong Kong.