Women on Boards Hong Kong 2019: Q4

2 October 2019

We are disappointed to report that the overall percentage of women on the boards of Hong Kong’s Hang Seng Index companies has dropped over the last quarter from 13.5% to 13.4%, and since January 2019, has declined 0.5% from a high of 13.9%

Digging into the numbers, the decrease since last quarter can be attributed to the loss of one board seat (held by a woman – Mary Ma – who sadly passed away in August 2019.) Factoring this in, the total number of directorships held by women has decreased to 80, where it sat in Q2 of this year and the total number of directorships held by either men or women has dropped to 597 from 598 the previous quarter.

Since January, the number of women appointed to HSI board roles has been a paltry five (including Mary Ma).  Unless there is a significant improvement in Q4, 2019 could be the worst year for women on boards since Community Business started tracking progress in 2009.

As we enter the final phase of 2019 and look ahead to the next year, it is discouraging to see an overall stagnation in Hong Kong with regard to female representation on boards.  At the same time, we see Singapore continuing to surge ahead by achieving 15.7% in H1 2019. 

We must reiterate again our message that having a gender diverse board is not about optics, but about solidifying your business. A board made up of different, even conflicting, perspectives and life experiences encourages a culture of questioning and robust discussion. This will not only help to mitigate risks and strengthen governance but ensure a higher probability of business success, which is backed by a growing body of research. In these volatile and disruptive times, companies should demand a strong, diverse board that futureproofs their existence.

2 October 2019

Again, we are disappointed to report minimal movement across all our diversity markers. There was marginal progress among two indicators this last quarter: companies with at least one female director, rising from 76.0% to 78.0%, and a reduction in all-male boards – dropping from 12 to 11 (22.0%) notably due to the appointment of Yang Ke to the Tencent board.

Companies with a female CEO and those with female executive directors remained constant at 1 (2.0%) and 16 (32.0%) respectively and sadly, the number of companies with multiple female directors dropped from 21 to 20 (40.0%).

2 October 2019

The top five companies on our Women on Boards League Table remain unchanged this quarter as well as from our Q2 analysis. Hang Seng Bank retains the top spot at 38.5%, with HSBC moving up to join them in the top position. Sino Biopharmaceutical retains their 36.4 percentage, with Link Real Estate rising to meet them in joint third. China Shengua Energy remain in fifth, increasing their percentage to 33.3%.

Most notably this quarter Tencent rose 18 positions to 23rd due to the appointment of Yang Ke to their board, and Bank of Communications dropped 19 places to 35th with one of two female directors leaving the board. 

2 October 2019

This quarter saw a welcome reduction in the number of all-male boards this quarter from 12 to 11, with the appointment of Yang Ke to the Tencent board. Ke’s appointment also removes Tencent from the list of companies which have never had a female board member, reducing this number from 7 to 6 this quarter.

2 October 2019

The additional new appointment made this quarter was to Yang Ke (Tencent). The appointment helped Tencent rise considerably in the rankings from 41 to 23^rd.

Mary Ma (HKEX and Swire Pacific board member) sadly passed away in August 2019 at the age of 66.

There have been some small victories for countries around the globe. Most notably, Singapore and India have overtaken Hong Kong in the rankings for the first time, reporting 15.2% (Singapore) and 14.0% (India) women on their boards. Regionally, Malaysia reports the highest numbers, with 23.2% recorded. Both India and Malaysia have government quotas in place which may go some way to explaining their acceleration in recent years. Singapore, via the government-backed Council for Board Diversity*, has enacted a multi-pronged campaign involving naming-and-shaming, engaging with board decision makers, maintaining a list of female candidates, and showcasing through data the impact on corporate performance. Inspired by this galvanised action, vocal support from male champions at the board level has increased dramatically. All of these factors have led to rapid progress in Singapore, with female board appointments reaching a record high of 24.0% during 2018.

• Previously named ‘Diversity Action Committee’ and starting in January 2019, its scope has expanded to also include statutory boards and non-profit organisations.