Corporate Governance and Sustainability Integrating Corporate and Investor Perspectives

Total Page:16

File Type:pdf, Size:1020Kb

Corporate Governance and Sustainability Integrating Corporate and Investor Perspectives research working group on Corporate Governance and Sustainability Integrating Corporate and Investor Perspectives Join our distinguished group of leading executives and expert researchers to explore real-world experiences and find solutions to governance and sustainability issues your organization faces. Trusted Insights for Business Worldwide Doing Well by Doing Right It used to be that a company’s financial issues differed from its social issues. But in today’s business climate, an organization’s financial matters are its social matters. Increasingly, companies are being forced to address issues such as climate change, environmental protection, and human rights—and not only by a few fringe shareholder activists. Large investors, public pension funds, and various stakeholder groups are applying extraordinary pressure on organizations to deepen their commitments to a range of concerns that arise at the intersection of business and society. Our research working Companies ignore this “civic market” at their own peril and with loss of opportunity. groups are confidential, By integrating sustainability and citizenship initiatives into your overall strategy, hands-on forums for you not only benefit society, but also your bottom line. This research working group leading executives to seeks to help public and private companies explore the links between Corporate Governance and Sustainability, develop effective programs, and know how best to explore critical issues communicate these efforts to institutional investors and stakeholders. Drawing with knowledge experts on the expertise of The Conference Board’s Corporate Governance and Corporate to gain the insights Citizenship & Sustainability centers, you will examine: needed for more practical The influence of activist institutional investors, private-equity and and effective decision- hedge funds, NGOs, and civil-society on stimulating CSR strategies making. The fiduciary responsibilities of and implications for boards to define corporate practices that generate shareholder value The newest governance and sustainability structures, practices, and trends The importance of transparency, accountability, and reporting the conference board research working group on corporate governance and sustainability www.conference-board.org The Conference Board devised its new Research Working Group on Corporate Governance and Sustainability to maximize benefits for participants, who will have the opportunity to learn from each other, The Conference Board’s expert team of researchers, and best-practice companies. As a research working group member, you will be able to participate in and take advantage of: Meeting One Meetings Two & Three The working group’s inaugural meeting Based on the results of the first meeting, you will will cover baseline financial/sustainability be able to mold the agenda for the next two meet- questions, including: ings. Among the topics you may explore are: How have financial and sustainability issues How climate change demands responses from melded into common stakeholder concerns? business and society; Who are the key players (investors, NGOs, etc.) The potential for dramatic redefinitions of what and leading companies framing the debate? constitutes shareholder value in a carbon-limited business environment; What are the pros and cons of indices that track and rate CSR efforts? The role of sustainability in emerging markets like China, India, and Brazil; The potential for U.S. environmental regulations to transform markets and business strategies. Why Should You Join? By joining The Conference Board Research Working Group on Corporate Governance and Sustainability, you will take an active role in going beyond description of issues by exploring and customizing best practices. In addition to working personally with researchers from The Conference Board to develop approaches vital to your needs, you will be able to draw on knowledge gained from leading global companies and investors that have grappled with issues relating to governance and sustainability. As a group member you will: Discuss the implications of findings for your business with a network of peers and leading experts from The Conference Board Frame issues and develop workable solutions Exchange experiences, ideas, and insights via confidential, frank discussions Increase your ability to contribute to your CEO’s thinking and actions Contribute to improved business strategies and results www.conference-board.org/wgcorpgov1 the conference board research working group on www.conference-board.org corporate governance and sustainability The Conference Board Research Working Group on Corporate Governance and Sustainability offers its participants: A quality learning experience where the cross-sectoral, small-group dialogue settings is conducive for confidential and frank discussion while you may interact with a network of peers, experts and facilitators Webcasts of each meeting, as well as a final webcast summarizing findings, conclusions, and recommendations for further action. A Members-Only Website that will contain executive-action summaries of meetings, an interactive message board, a running blog to keep you informed of key developments in the field, and flash surveys of members. Paul DeNicola Program Information Research Working Group co-Leader The Conference Board Research Working Group on Corporate Governance and Sustainability +1 212 339 0221 will meet three times in person and three times via web conferences over the course of six to [email protected] eight months. In between these meetings, researchers from The Conference Board will perform Paul DeNicola, Ph.D. is Senior Manager studies requested by the working group and prepare mini research reports on each theme. of The Conference Board Corporate Governance Center and Directors’ Inaugural Meeting November 6-7, 2008, The Conference Board, New York, NY Institute, and develops research and continuing education programs for Participation fee $12,500 (includes a one-year membership in The Conference Board corporate directors and senior executives. Governance Center) Fees cover participation of up to two senior executives from your organization and include the cost of administering the program and producing the research, David J. Vidal as well as the meeting facilities and group meals. Members are responsible for their travel Research Working Group co-Leader and hotel arrangements. Members of the Governance and Citizenship & Sustainability +1 212 339 0445 [email protected] Centers are exempt from the participation fee. David J. Vidal is Director of The Conference To join or for more information visit www.conference-board.org/wgcorpgov2 or Board Center for Corporate Citizenship & contact Jeanne Shu at [email protected] or 212 339 0491 Sustainability and is responsible for research and program development in corporate citizenship and sustainability, The Conference Board Related Resources corporate responsibility and corporate philanthropy and community engage- ment. He is a Fellow of the Royal Centers and Councils Publications Society for the encouragement of the Center for Corporate Citizenship & Sustainability The Corporate Governance Handbook 2007: Arts, Manufactures & Commerce and Governance Center & Directors’ Institute Legal Standards and Board Practices a White House Fellow. Council on Sustainability Reputation Risk: A Corporate Governance Perspective Global Council of Investor Relations Executives Matteo Tonello LL.M., Ph.D. is Senior Reducing US Greenhouse Gas Emissions: Research Associate of The Conference European Council on Corporate Responsibility How Much at What Cost? Board Governance Center. Dr. Tonello and Sustainability Managing for a Carbon-Concerned Future: has authored a report on stock market Global Council of Business Conduct A Decision-Making Framework short-termism, a report on emerging Council on Corporate Compliance governance practices in Enterprise Risk Managing Great Expectations: Reshaping Engagement Strategies to Address Management (ERM), and a study of corporate governance best practices in family-controlled corporations. For our full listing of publications and events visit www.conference-board.org Carolyn Cavicchio is Senior Research Associate for Global Corporate Citizenship in The Conference Board Center for Corporate Citizenship & Sustainability. With 20 years of experience in the citizenship field, she is a national expert in corporate community involvement and philanthropic programs, as well as a strategic planner, facilitator, analyst and program developer. www.conference-board.org/wgcorpgov1 The Conference Board, Inc., 845 Third Avenue, New York, NY 10022-6600 / Tel +1 212 759 0900 / Fax +1 212 980 7014 / www.conference-board.org The Conference Board Asia-Pacific, 22/F, Shun Ho Tower, 24-30 Ice House Street, Central, Hong Kong sar / Tel +852 2804 1000, Fax +852 2869 1403 / www.conference-board.org/ap.htm The Conference Board China, 7-2-72 Qijiayuan, 9 Jianwai Street, Beijing 100600, P.R. China / Tel +86 10 8532 4688 / Fax +86 10 8532 5332 / www.conference-board.cn The Conference Board Europe, Chaussée de La Hulpe 130, box 11, B-1000 Brussels, Belgium / Tel +32 2 675 54 05 / Fax +32 2 675 03 95 / www.conference-board.org/europe.htm The Conference Board of Canada, 255 Smyth Road, Ottawa ON KIH 8M7, Canada / Tel +1 613 526 3280 / Fax +1 613 526 4857 / www.conferenceboard.ca.
Recommended publications
  • Job Satisfaction 2017 EDITION CHARTBOOK
    Job Satisfaction 2017 EDITION CHARTBOOK MORE OPPORTUNITY AND JOB SATISFACTION IN A TIGHTER LABOR MARKET Job Satisfaction 2017 Edition Chartbook More Opportunity and Job Satisfaction in a Tighter Labor Market by Michelle Kan; Gad Levanon, PhD; Allen Li; and Rebecca L. Ray, PhD Methodology The Conference Board Job Satisfaction survey is a barometer of satisfaction from the perspective of US workers. Survey results are based on workers’ perceptions of their current role and their workplace environment. The Job Satisfaction survey questions are asked as part of the Consumer Confidence Survey®. In 1967, The Conference Board began the Consumer Confidence Survey (CCS) as a mail survey conducted every two months; in June 1977, the CCS began monthly collection and publication. The CCS has maintained consistent concepts, definitions, questions, and mail survey operations since its inception. As of February 2011, The Conference Board changed survey providers from TNS to The Nielsen Company for ongoing CCS operational support. Nielsen uses a mail survey specifically designed for the Consumer Confidence Survey. In addition, to improve the accuracy of the estimates and ensure the proportionate representation of these categories in the estimates, the CCS uses a post-stratification weighting structure. The Job Satisfaction questions are based on a 5-point scale ranging from “least satisfied” to “most satisfied” and have remained consistent over time. However, with the addition of post-stratification weighting and a qualifying question that was included after 2011, the historical trend of the series may not be fully comparable. Top Four Findings Examining annual job satisfaction continues to provide useful insights into US employees’ sentiments about work and offers interesting insights into the national labor market and macroeconomic trends.
    [Show full text]
  • CED Brochure
    Committee for Economic Development Reasoned Solutions from Business in the Nation’s Interest The Committee for Economic Development of The Conference Board (CED) is a nonprofit, nonpartisan, business-led public policy organization that delivers well-researched analysis and reasoned solutions to our nation’s most critical issues. CED’s work is grounded on seven core principles: sustainable capitalism, long-term economic growth, efficient fiscal and regulatory policy, competitive and open markets, a globally competitive workforce, equal economic opportunity, and nonpartisanship in the nation’s interest. CED’s research falls under four issue areas: fiscal health, education, global competitiveness, and democratic institutions. A Distinguished History The Committee for Economic Development was CED’s membership structure offers business leaders an founded in 1942 during World War II by a group of opportunity to impact public policy in numerous areas business leaders who were concerned about the future and through multiple platforms, including: formulating of the global economy. policies that are derived from rigorous research; CED’s work in those first few years led to great policy briefing lawmakers about the need for sound policies; accomplishments, including the Bretton Woods and raising issue awareness by participating in events Agreement, establishing both the World Bank and and media interviews across the U.S. International Monetary Fund, and the Marshall Plan, the economic development program that helped rebuild Europe. In recent decades, CED has made significant contributions across its portfolio, including increasing access to pre-kindergarten and college, advancing campaign finance reform nationwide, placing more women in corporate leadership, and reducing government spending. Today, CED continues to have an impact through its trusted research and advocacy.
    [Show full text]
  • Asia Council On
    Asia Council on Business Conduct The Asia Council on Business Conduct provides an exclusive network for the candid discussion of the key ethics, governance, and business practice issues confronting corporations at home and in host countries. Council members exchange views on areas of common concern, including how to develop effective compliance systems, balance stakeholder interests, and articulate the core principles of corporate governance. The Council Program Conference Board Councils are exclusive, cross-industry groups comprised of both local companies and MNCs that meet in person 2–3 times a year for a day and a half to share knowledge and discuss emerging business trends. Council members benchmark with peers and can take advantage of council resources online through our Members Only Web site. Each council has its own Web site, with links to partner councils, which provides council members with even greater access to our global network of executives. Membership Requirements Meetings per year: 2 Council Representative Poonam Barua Members must be the senior execu- [email protected] tive—chief executive officer, chief (91) 11 2689 8869 financial officer, Board director, Jed Luksin legal counselor, ethics officer, or [email protected] (1) 212 339 0208 senior manager—responsible for devel- www.conference-board.org oping internal ethics policies and compliance systems and for articulat- ing their company’s core “values” to A Partial List of Represented external constituencies, stakeholders, Companies and
    [Show full text]
  • The Conference Board
    THE BUSINESS KNOWLEDGE NETWORK THE CONFERENCE BOARD newsletter summer 2002 Sharon Patrick on the Conference Board Strategic Model of Martha Forms Blue-Ribbon Governance Group Stewart Living Omnimedia The Conference Board’s newly-formed Com- mission on Public Trust and Private Enter- prise has begun to examine critical corporate Sharon Patrick is President and Chief governance issues and will issue its first Operating Officer of Martha Stewart report and recommendations this fall. Living Omnimedia Inc. The creator of The co-chairs of this blue-ribbon group MSLO’s “Omni” business model and a are Peter G. Peterson, Chairman of The major force in the profitable growth of Blackstone Group and Chairman of the Fed- the company, Patrick is responsible for eral Reserve Bank of New York, and John the company’s strategic development W. Snow, Chairman of CSX and former and transactions, and runs MSLO’s S Chairman of the Business Roundtable. day-to-day business operations. “Misconduct by highly visible corpora- A Trustee of The Conference Board, tions is eroding shareholder value for all cor- Patrick was Martha Stewart’s consultant porations and public confidence in critical beginning in 1993, a founding partner of elements of our economic system,” they MSLO with Stewart in 1996, and declared. assumed her current position in 1997. The Conference Board’s long-standing She received an MBA from the Harvard Sharon Patrick Business School, and a bachelor’s degree reputation for independent fact-finding and in history from Stanford University. She the experience, accomplishments, and rep- was interviewed by Randall Poe in The Q.
    [Show full text]
  • The Conference Board
    THE BUSINESS KNOWLEDGE NETWORK THE CONFERENCE BOARD newsletter F a l l 2 0 01 Fidelity’s Pozen Examines Tony Blair Briefs Conference Board Threats to Economic Growth Members in London British Prime Minister Tony Blair briefed Conference Board Trustees, and chairmen and chief executives of FT 500 companies, at a special Conference Board meeting in obert Pozen is Vice Chairman of Fidelity London. The Prime Minister was welcomed Investments. Formerly president of by Lord Marshall of Knightsbridge, Chair- Fidelity Management & Research Com- man of British Airways Plc and Chairman of pany—Fidelity’s investment advisor for its The Conference Board’s Board of Trustees. nearly $1 trillion in mutual funds—Mr. Lord Marshall organized a series of events Pozen is a member of the President’s for the gathering, which included Conference RCommission to Strengthen Social Secu- Board Trustees and CEOs of U.K. member rity and a Trustee of The Conference companies. The program featured a boat jour- Board. His book, The Mutual Fund Busi- ney up the Thames, culminating at the Tower ness, is widely used in business schools. of London with the “Ceremony of the Keys” and a private viewing of the Crown Jewels. In this interview (conducted prior to the Robert Pozen events of September 11, 2001), Pozen con- siders current threats—and positive impulses—to business growth. In this envi- ronment, says Pozen—who also offers a look Growing Clout for ahead for mutual funds—The Conference Board is a vital resource for business lead- Global Investors ers around the globe. As corporations around the world become What are the major threats to U.S.
    [Show full text]
  • The Conference Board Newsletter Is Written and Edited by Randall Poe, Carol Courter, and Sandra Lester
    THE CONFERENCE BOARD newsletter Winter 2003 The Conference Board Conference Board Forms Directors’ Blue-Ribbon Commission Institute The Conference Board has formed the Calls for Major Reforms Directors’ Institute to provide broad-based education for corporate directors. Endorsed by The Commission on Public Trust and Pri- vate Enterprise, the new Institute offers briefings on key governance issues and pro- vides high-level networking opportunities for directors of major companies. The comprehensive programs will include sessions on compliance, liability and ethics, as well as auditing and compensation issues. Most importantly, it will allow directors to share best practices with their peers. Further information: Diane Insolia, Global Corporate Governance Research Center, 212 339 0392 Members of The Conference Board Commission on Public Trust and Private Enterprise at a press briefing in New York. A Call to Tighten Port Security The Conference Board blue-ribbon In a move to restore investor confidence More than 85 business and government lead- Commission on Public Trust and Private and improve corporate governance, the ers met in Washington D.C. to examine pos- Enterprise has called on companies to seri- Commission also recommended that audit- sible terrorist threats to America’s ports. ously consider separating the offices of ing firms confine their activities to auditing. Co-sponsored by The Conference Board chairman of the board and CEO. “The Commission recommends against pub- and Booz Allen Hamilton, the group learned “The roles of the chairman and CEO lic audit firms performing services that put that a “dirty bomb” attack through Amer- should be performed by two separate indi- them in an advocacy position, such as prof- ica’s port system could cost business more viduals,” concludes the Commission’s final fering novel and debatable tax strategies and than $58 billion and have a crippling impact report.
    [Show full text]
  • The Confernce Board Newsletter Fall 2002
    THE CONFERENCE BOARD newsletter Fall 2002 Charles R. Shoemate on the Mario Monti Briefs Challenges Facing Business The Conference Board Mario Monti, European Commissioner for Competition, gave The Conference Board’s and Restoring Public Trust Board of Trustees a timely update on economic and legal relationships between the United States and Europe. Charles R. Shoemate was Chairman, He explored a wide range of issues, from President and CEO of Bestfoods until it was how to deal with illegal cartels and mergers acquired by Unilever in 2000. He became to liberalizing trade. Monti said that jurisdic- an advisory director in 2001. He is a tions in Europe and the United States are Director of Cigna Corporation, International working closely together and reach agreement Paper Company, Texaco Inc. and is a on the vast majority of cases before them. former Chairman of the Board of Trustees Cat The Conference Board. Q: What is the greatest single challenge facing business? What are the barriers Charles R. Shoemate to success? Shoemate: The single greatest business challenge is to maintain worldwide eco- open markets, can produce sustainable eco- nomic liberalization and growth. nomic growth and improvement in the well Mario Monti (center), Commissioner, Competition Directorate-General, European Commission, at In the short term, the barriers are the dis- being of all that participate in the “system.” The Conference Board’s Trustees Meeting in Europe. trust and the crises of confidence in the busi- The barriers to success are in some ways ness establishment that have resulted from inherent in the strengths of the system. Per- the high-profile failures in a few large U.S.
    [Show full text]
  • The Conference Board
    THE BUSINESS KNOWLEDGE NETWORK THE CONFERENCE BOARD newsletter spring 2002 A.P. Moller/Maersk: The Drive to Make Dealing with a Sluggish Boards More Effective The collapse of Enron is spurring many com- World Economy panies to re-examine their board management systems. A new Conference Board report, available online, provides a valuable check- list of do’s and don’ts in making board A.P. Moller/Maersk,headquartered in Copenhagen, is a leading global shipping firm. The company is processes more effective. also engaged in a multitude of other businesses, The report urges corporate directors, who including the exploration and production of oil and no longer enjoy broad legal protection, to ques- gas, shipbuilding, aviation, supermarkets, and infor- tion management when “red flags” appear and mation technology services. The company has more than 60,000 employees in some 100 coun- even when they sense that serious problems tries operating a fleet of about 250 vessels. are developing. “The first response is to blame Most well-known is A.P. Moller’s shipping arm, the accountants. But the accountants don’t AMaersk Sealand, the world’s leading containerline act in isolation. It takes a board, management, with a network of services connecting all six con- legal counsel and a host of others to create tinents and more than 20,000 port calls per year. The following is a conversation with leaders of some of these spectacular failures of corpo- this remarkable firm. Mærsk Mc-Kinney Møller is rate governance.” Chairman of the Board of the firms comprising The Conference Board report presents a Mærsk Mc-Kinney Møller the nucleus of the A.P.
    [Show full text]
  • DIRECTOR NOTES Maximizing the Benefits of Board Diversity Lessons Learned from Activist Investing
    DIRECTOR NOTES Maximizing the Benefits of Board Diversity Lessons Learned from Activist Investing By Jared L. Landaw, Chief Operating Officer and General Counsel, Barington Capital Group, L.P. Introduction In recent years, publicly traded companies in the United States have faced increasing pressure to improve diversity on their corporate boards. Influenced by state legislation1 as well as the efforts of institutional investors2 and other diversity advocates,3 companies are recruiting more female directors than ever before. Approximately 45 percent of the directors added to the boards of companies in the Russell 3000 during the 2019 proxy season were women, up from 12 percent in 2008.4 The percentage of new directors who are minorities is also increasing, although at a significantly slower rate, with approximately 15 percent of the directors added to the boards of Russell 3000 companies during the 2019 proxy season belonging to a racial or ethnic minority group.5 One of the central arguments cited for improving the diversity of demographic characteristics such as gender, race, and ethnicity on corporate boards is that such diversity is necessary to ensure that boards are able to perform their obligations effectively in today’s competitive business landscape.6 In calling for an increase in gender diversity on boards, Ronald P. O’Hanley of State Street Global Advisors stated, “In a more complex, innovation-driven environment, embracing a diversity of thinking, competencies, and backgrounds is a business imperative.”7 David Solomon, CEO of Goldman Sachs, expressed a similar sentiment when announcing that, beginning July 1, 2020, Goldman Sachs will not take a company public unless it has at least one diverse board member: “I come from a position of my own experience where I look DN-V11N2 | JUNE 2020 | Subscribe for free at www.conferenceboard.org/directornotes © 2020 The Conference Board, Inc.
    [Show full text]
  • Diversity and Work-Life Strategy Council Held Its Inaugural Meeting 12 Recent and Upcoming Events in October at the Offices of UBS in Hong Kong
    WINTER 2007 BoardAsia A NEWSLETTER FOR MEMBERS OF THE CONFERenCE BOARD IN asIA Inside Diversity and Work-Life Strategy 2 Briefings and Surveys 5 Councils Council Launches in Asia-Pacific 10 Recent Research he new Asia-Pacific Diversity and Work-Life Strategy Council held its inaugural meeting 12 Recent and Upcoming Events in October at the offices of UBS in Hong Kong. The new group will be a network for T executives with lead responsibility for diversity and work-life to identify emerging issues and best practices, both globally and regionally. Like all of the councils from The Conference Board, this new group gives senior executives from respected global and large regional companies an invaluable forum for exchanging information, discussing current trends, and engaging in joint problem solving. Andrew N. Bell, author of Leadership Development in Asia-Pacific: Identifying and Developing Leaders for Growth and program director of the Asia-Pacific Human Resources Council, will be the new council’s program director. Ran de Silva, director, global diversity, UBS and Geoff Hayward, managing director, head of human resources, APAC, and global head of reward and human resources operations, Andrew N. Bell Program Director of UBS, opened the meeting. Bell then led a roundtable where the Asia-Pacific Diversity and Work-Life Strategy Council members introduced themselves, shared their key objectives and expectations for the council, and gave their personal and corporate perspectives on diversity in the Asia-Pacific context. Next, Karen Harries, director, work- life balance specialist, UBS, presented the company’s approach to work-life strategy development and policy implementation and led a discussion of best practices and likely new developments.
    [Show full text]
  • Board Europe Board Europe
    > SPECIAL MADRID ISSUE Volume 23 • Number 7/8 Board Europe A NEWSLETTER FOR MEMBERS OF THE CONFERENCE BOARD IN EUROPE July/August 2008 Pedro Solbes, Vice President & Minister The Conference Board Trustees with Distinguished Dinner Guest Douglas Conant, Chairman, Board of Finance of Spain, speaking at The Pedro Solbes, Vice President & Minister of Finance of Spain, hosted of Trustees, The Conference Board, Conference Board’s Trustees’ and by Francisco González at BBVA’s Palacio del Marqués de Salamanca and President and CEO, Campbell Members’ Dinner. in Madrid. Soup Company. BRIC House: As growth slows to a crawl in the U.S. and Europe, Latin America is enjoying an economic renaissance. What are they doing right? Latin America’s By Marc Stegeman Economic Miracle Not so long ago, Latin America was the poor relation of the global economy, with soaring inflation, collapsing currencies, rampant poverty and social unrest. Today, Latin America is on a roll. Brazil, one of the rapidly emerging markets, is the 10th largest economy in the world, followed by Mexico at No. 11. Chile is enjoying boom times, as are traditional slow performers such as Colombia, Peru and Ecuador. As the U.S. and Europe enter what is expected to be a protracted period of slow growth, what lessons can be drawn from this economic rebirth? Rising commodity prices, notably for oil, are part of the story. Latin America is rich in natural resources, including minerals and one other commodity of vital importance for the future: water. But it is also rich in human resources. Efforts in recent years to improve education, both public and private, are helping to raise skill levels and shift more of the labor market into jobs that generate higher productivity growth (see article on page 3).
    [Show full text]
  • News Release
    News Release Follow The Conference Board For further information: BEIJING: The Conference Board China Center for Economics and Business Claire Xia + 86 10 8532 4688 / [email protected] NEW YORK: The Conference Board Jonathan Liu +1-732-991-1754 / [email protected] Carol Courter +1-732-672-2817 / [email protected] BRUSSELS: The Conference Board Andrew Tank + 32 2 675 5405 / [email protected] For Release August 25, 10:00 A.M. Beijing time (August 24, 10:00 P.M. New York time) The Conference Board Leading Economic Index® for China Increased in July Beijing, August 25, 2015…The Conference Board Leading Economic Index® (LEI) for China increased 0.9 percent in July to 331.2 (2004 = 100), following a 0.6 percent increase in June and a 1.1 percent increase in May. Total loans issued by financial institutions made the largest positive contribution to the index, followed by the 5000 industry enterprises diffusion index: raw materials supply index, and total floor space started. The consumer expectations index, The PMI new export orders index, and the (inverted) PMI supplier delivery index declined in July. “July’s gain in the Leading Economic Index for China was driven mainly by bank loans, while consumer sentiment, manufacturing, and exports were all weak,” Said Jing Sima, senior economist at The Conference Board. “Despite the gain, the increased volatility in the LEI, lack of strength in the real economy, and recent turmoil in China’s stock and currency markets suggest that China’s economy will be facing increasing downside risks in the months ahead.” The Conference Board Coincident Economic Index® (CEI) for China, which measures current economic activity, increased 1.1 percent in July to 278.4 (2004 = 100), following a 0.2 percent increase in June and a 0.6 percent increase in May.
    [Show full text]