Hong Kong companies lead in corporate governance across Asia-Pacific, shows a ranking compiled by a non-profit Asian Corporate Governance Association and brokerage CLSA Ltd. Singapore and Japan hold the second and third spots, respectively.
The report shows that while Hong Kong and Singapore both claimed the top spot, their scores deteriorated from the previous ranking in 2012 because of conflicts over governance regulations.
Singapore, which took first place two years ago, has lost some ground due in part to lackluster progress on enforcement. The report said the government has shown less consistency in its approach to corporate governance policy than in the past and that the reform process has often been slower than expected.
Japan, ranked fourth in the previous report, advanced because Prime Minister Shinzo Abe's government made it a core of economic reform programs to create a better corporate governance environment.
China ranked ninth -- the Philippines and Indonesia were tied at No. 10 -- and scored the same as in 2012 amid continuing concerns over the speed and quality of financial disclosures, according to the report.