On December 3rd, Fidelity International and Purple Top jointly released the "2024 China Post-Investment Management Report". The report shows that with China continuously promoting the high-quality development of the capital market, minority shareholders have become an undeniable force in the decision-making of A-share listed companies, against the backdrop of new reform policies such as the new "Nine Articles of Governance" and the new "Company Law". Although the number of minority shareholders and the rate of voting participation have stabilized in recent years, they are more focused in post-investment management, tending to speak out on more controversial proposals. Timely regulatory policies are expected to further boost the development and strengthening of the power of small and medium shareholders, promoting the continuous improvement of Chinese corporate governance and post-investment management standards. Since the first report was released in 2020, this is the third report co-written by Fidelity and Purple Top. Based on in-depth specialized research, the report continues to focus on and track the voting behavior of A-share shareholders and changes in Chinese corporate governance, aiming to provide a window for domestic and foreign investors to understand the progress of post-investment management in China. While the growth rate of voting participation has stabilized, the expression of opinions has become more targeted. Excluding the largest shareholder, the average attendance rate of minority shareholders at shareholder meetings between 2022 and 2023 was 28.4%, slightly higher than in 2020-2021, but the increase was only 0.85%, about half of the increase in previous years (1.67%). There are two main reasons behind this: first, the increase in the dispersion of equity ownership in the A-share market has decreased compared to previous years, meaning that the influence of minority shareholders has also slowed down, resulting in a corresponding decrease in their motivation and opportunities to take action. The report shows that the average increase in the proportion of listed companies where the largest shareholder holds less than 30% of the shares from 2020-2021 to 2022-2023 was only 0.81 percentage points. Second, the growth of institutional investors, especially foreign investors actively participating in post-investment management, has been relatively weak. Given these circumstances, additional regulatory policy support may be needed to further strengthen the power of small and medium shareholders in A-shares. Although the growth of minority shareholders' voting participation has slowed down, they have become more targeted in expressing dissenting opinions. The data shows that although the proportion of high dissent (where the combined opposition and abstention rate exceeds 10%) proposals dropped from a high of 4.45% in 2022 to 3.39% in the first half of 2024, this does not mean that investors are unwilling to reject proposals they disagree with. Further analysis reveals that for contentious proposals, they are increasingly active in expressing their views. In the first half of 2024, the proportion of high dissent proposals in the "potential dispute" category increased by 4.35 percentage points compared to 2022, reaching 25.28%. The report also found that "articles of association amendments" and "related party transactions" were among the most opposed types of proposals from 2022 to the first half of 2024. In seeking approval for "related party transactions", controlling shareholders as related parties typically abstain from voting, giving smaller shareholders a greater weight in voting. The number of shareholder proposals has increased, and the quality of shareholder meeting materials has improved In addition to participating in voting, investors can also participate more actively in shareholder meetings through other means, some of which involve submitting shareholder proposals. According to the report, between 2022 and the first half of 2024, minority shareholders collectively submitted 14 proposals, twice the number from the first half of 2020 to 2022. Of these 14 proposals, 13 involved the election of directors and supervisors, but the voting results show that it is still very difficult for candidates nominated by minority shareholders to successfully enter the board of directors. On the other hand, the report found that the standards and levels of communication between A-share listed companies and shareholders have continued to improve. In 2024, the proportion of A-share companies that released integrated versions of shareholder meeting materials before the annual general meeting rose to 63.2%, showing a trend of annual increase since 2022, when the proportions were both below 60%. By releasing shareholder meeting materials in advance, investors no longer need to spend hours browsing individual company announcements for voting analysis, making it easier for shareholders to evaluate proposals efficiently and prepare for informed voting decisions. From an investment perspective, integrating an ESG perspective can provide investors with more in-depth and rich information, thereby aiding investment decision-making and reducingThe probability of tail risk occurrence is better for long-term investment. Active post-investment management is one of Fidelity's core capabilities in sustainable investment. We believe that responsible management not only helps encourage companies to improve ESG performance, enhance portfolio resilience from a financial return perspective, but also create more value for society. We will also rely on Fidelity's leading sustainable investment framework, follow the trend of low-carbon and green development in China, and implement sustainable investment practices in the local market to contribute to the long-term healthy development of the Chinese capital market."Strength." Tang Shuwei, Partner of Purple Top Shareholder Services, said: "Purple Top and Fidelity International share the same ideas in improving corporate governance and promoting the development of post-investment management in China. We have maintained close cooperation for many years, and continuously shared the latest developments in the Chinese market's post-investment management through report releases. As a pioneer in the Chinese proxy advisory industry, Purple Top has assisted institutional shareholders to actively participate in the governance of listed companies, witnessing the voices of more and more small and medium shareholders being heard. We will continue to serve as a 'bridge' and help institutional investors responsibly exercise their voting rights, urging listed companies to improve their governance level."