Hong Kong, Monday 9 October 2017 — Computershare (ASX: CPU) is delighted to support the release of Activist Investing in Asia, the first report authored by Activist Insight for markets in Asia.
Josh Black, Editor-in-Chief at Activist Insight said 'I would like to extend our thanks to Computershare for sponsoring this unique and timely special report. Between 2013 and the end of June 2017, more than 200 companies were publicly targeted by activists across Asia. Moreover, activity has accelerated.'
According to the report, 42% of activist demands made at Hong Kong-based companies and 50% of those made at China-based companies since 2013 have been at least partially satisfied.
Savoy Lee, Vice President at Computershare responsible for Strategic Shareholder Solutions was interviewed for the report and said, 'Computershare's clientele represents 80% of the total market capital in Hong Kong, therefore we often act as an intermediary between investors, issuers and regulators on the topic of shareholder communications. I believe this report gives market participants a useful overview of activist movements in Asia and certainly gives a wake-up call to listed companies about the importance of effective, proactive shareholder communication.'
A separate study carried out by Computershare on trends in the AGM season among Hong Kong-listed companies observed a significant drop in voted-down resolutions: from 31 resolutions in 546 AGMs in 2016 to 9 resolutions in 565 AGMs attended by Computershare between April and June in 2017. The decrease indicates Hong Kong issuers are more aware of the importance of good preparation before their AGM. The findings support Lee's view that a lot of shareholder communication work is done behind-the-scenes and that there are many logical steps, including analytical work that companies can do to help achieve their desired voting results.
Ms. Lee added that like any relationship, shareholder communication should start early. She recommended five vital steps for issuers to enhance communications with shareholders.