The corporate governance of companies listed on the ChiNext Board, China's Nasdaq-style market, is better than those listed on small and medium-sized boards, according to a report released on Wednesday by CY-zone.cn, China's main online early-stage investment portal.

The report said that for a privately-owned enterprise the higher ratio of shares of the largest shareholder, the higher the ratio of return on equity the company will have.

The concentration ratio of shares is necessary for a company at an early development stage or experiencing rapid growth, the report added.