This case is about GOVERNMENT
PUBLICATION DATE: February 15, 2002 PRODUCT #: HKU183-PDF-ENG
PetroChina: International Corporate Governance with Chinese Characteristics Case Solution
PetroChina, the largest petroleum and gas business in China, was made a showcase for sound corporate governance in China’s state-owned enterprises (SOEs). Its initial public offering (IPO) was part of the government’s plan to set the basis for other large capital-starved SOEs on the international capital market.
Analysts had reservations that the firm wasn’t yet close to where it needed to be in relation to international governing standards despite the efforts for restructuring. In analyzing China’s political and economical foundation and the governance model of PetroChina, this case illustrates that the corporate governance system in China offers limited protection for minority shareholders.