Why Bonnie Y. Chan Of HKEX Is Abolishing All-Male Boardrooms

Bonnie Y. Chan, CEO of the Hong Kong Exchanges and Clearing Limited (HKEX), is driving a groundbreaking initiative to promote diversity among Hong Kong's listed companies. Recognising the critical need for change, Chan has introduced significant reforms aimed at fostering inclusivity and addressing gender disparities in corporate leadership.

The Importance of Boardroom Diversity

Chan spotlights the undeniable advantages of having diverse perspectives in decision-making spaces, particularly boardrooms. Diverse boards enable companies to approach problem-solving with broader viewpoints, leading to more effective and innovative solutions.

Targeting Gender Diversity

While diversity encompasses various dimensions, Chan has prioritised gender representation as a starting point. Upon analysing the data, Chan and her team identified a glaring issue: out of approximately 2,600 listed companies in Hong Kong, nearly 800 had single-gender boards.

This lack of gender balance prompted decisive action. In 2022, HKEX implemented a groundbreaking rule banning single-gender boards, giving companies until the end of 2024 to comply. This bold measure set Hong Kong apart, with Chan acknowledging that other markets might adopt a more cautious approach. She explained, “We decided maybe we do need to whip the stick a little bit.”

Positive Results and Progress

Chan’s leadership has already brought notable results. The number of single-gender boards has halved from 800 to less than 400 in just two years. This shift has created approximately 400 new opportunities for female directors, marking a significant milestone in the journey toward gender equality in corporate governance.

A Global Perspective on Gender Gaps

The challenge of achieving gender equality in leadership extends beyond Hong Kong. Globally, women occupy less than a quarter of C-suite roles. At the current pace, it is estimated that it will take 152 years to close the gender gap in economic participation and opportunity. Chan’s efforts are a timely reminder that proactive measures are essential to accelerate progress.