BEIJING - Chinese companies are attaching increasing importance to corporate governance and transparency, according to an industrial survey.

Chinese firms have extended their lead in the minds of global investors for the second year in a row, according to the 2018 All-Asia Executive Team survey released Tuesday by international financial publication Institutional Investor.

A total of 3,538 buy-side individuals and 982 sell-side analysts participated in the survey, nominating 2,368 companies across 18 sectors based on 10 core areas including timely and appropriate levels of financial disclosure and high quality of corporate documents and investor kit materials.

Of the 18 sectors, Chinese companies dominated across nine, in particular leading the internet sector.

Ping An Insurance (Group) Co, a personal financial services provider, from the insurance sector and Geely Automobile Holdings from Autos & Auto Parts clinched the first place in the Best CEO, Best CFO, Best Investor Relations Professional, and Best IR Company rankings in their sectors.

Chinese companies were represented in all 18 sectors in the Honored Companies table, with lower representation in auto and auto parts, internet, and banking sectors while seeing an increase in basic materials, technology, hardware and property sectors to name a few.

"With the continued commitment to open the Chinese capital markets to outside investors from the government, and an ongoing commitment from companies to deliver transparency and accessibility to investors, we have seen another leap ahead in the minds of the investment community for Chinese listed companies, outstripping their rivals across the region," said Cara Eio, Institutional Investor Research's Head of Asia.

However, Chinese firms will need to continue to improve their commitment to corporate governance and environment, social and governance (ESG) to match the higher global standards, the survey showed.

"A company that lives and breathes positive ESG values will tend to deliver better performance results, and will be accordingly rewarded by investors," Eio said.

She suggested that Chinese companies should have a clear policy for ESG that is sponsored or spearheaded by a senior member of the management team and endorsed by the board while setting clear KPIs of what these policies can achieve in both short and long term goals.

Meanwhile, it is important to articulate these policies to their stakeholders including investors, she added.