TWF and 30% Club have been longtime advocates for more diverse corporate boards in Hong Kong. Even with incremental improvements in the last five years Hong Kong still lags way behind other global financial centres with female directors comprising 28.7% of the UK’s FTSE 100 and 30% of Australia’s ASX100, respectively. This is despite the strong business case and growing body of research that shows that gender diverse boards and management teams are good for business.

We welcomed the HKEX Consultation proposals but believed they needed to go further to achieve real change. TWF and 30% Club recommended to HKEX that the Corporate Governance Code include: 1) a specific focus on gender diversity, 2) that Board diversity polices include measurable objectives, and 3) specific guidance for the process for nomination and board diversity review.

Ten days ago, HKEX published its long awaited Consultation Conclusions.

Update from HKEX

We are delighted to see that HKEX is placing a stronger emphasis on the importance of Board diversity and has heard our strong call for a focus on gender diversity. In particular, we are pleased with the following changes:

• Non gender specific Listing rules
• Having a diversity policy is now a rule for listed companies
• A separate “Guidance for Boards and Directors” publication containing practical advice, on board diversity, gender diversity and diversity policies

HKEX’s revisions are important and much needed to improve gender diversity on Hong Kong Boards. But our view remains that an additional requirement for companies to set measurable objectives for board diversity policies (rather than the inclusion of measurable objectives as a guidance) will be of benefit to Hong Kong.

This is a big step in the right direction and demonstrates the power of collective action for change. A huge thank you to all the companies, organisations and individuals who made submissions and to HKEX for considering our views.

It’s now up to companies to move beyond the minimum standards and to put in place leading strategies to deliver results.

Hong Kong’s stalled progress

The HKEX Consultation Conclusions come at a critical juncture. The latest figures from Community Business show that the number of women on boards of Hang Seng Index companies in Hong Kong is going backwards. As at June 22 we are now at only 13% compared to 13.8% in March 2018.

More disturbing is the fact that approximately one third of all listed companies in Hong Kong are without a single woman on their boards.

Increasing the numbers of women on the boards of listed companies is not only better for business, but delivers benefits for our whole society. If Hong Kong is to thrive as the leading capital market in Asia it needs smart, competent and diverse boards to meet the challenges of a changing business landscape. Having more senior women as role models filters down through the whole economy and can help on wider debates such as pay equity, workplace policies and other critical barriers facing women such as sexual harassment.

Next steps

At TWF, increasing the number of women on boards remains a priority. Together with the 30% Club we will continue our advocacy efforts with regulators, Government and the private sector. With this priority in mind, we are delighted to announce the launch of a new Boardroom Series for Women Leaders. TWF already works with a number of Women to Watch and this Series will provide board ready women with further skills, knowledge and connections necessary to facilitate the transition to the boardroom.