Are you a mid-career manager? Improve your personal finances with this checklist

Our financial goals change as we pass through different stages in life. This article is targeted at managers in the middle of their career (i.e. those who have been in managerial roles for several years) as a guide to plan your finances for the next decade, up until retirement.

As a mid-career professional, you are probably building your family and lifestyle while enjoying the benefit of a higher income. You also have about a decade or so until your retirement. Now is a great time to check whether you are on track financially in planning for your future.

You may spend a fair amount of time and energy contemplating your next car purchase or next vacation, so why not make time to assess your financial health as this will have a long-term impact on you and your family?

Although planning for retirement may sound like a daunting exercise, you can use this checklist to break down what needs to be done and guide yourself to a happy and comfortable future:

Be honest about your spending habits

Are you taking up more high-interest loans than is wise? Whether it’s a new car or another house, these big-ticket purchases have a huge impact on your finances. Are you truly comfortable with servicing these loans for several years? If yes, wonderful! If not, it is perhaps better to pass on these purchases so that you don’t take on more debt that you already have. The less you owe, the less you stress.

Beware the status game, i.e. making flashy purchases to impress your peers. This is a dangerous game that never arrives at a point of satisfaction, and can potentially bring you close to bankruptcy if done on the regular.

Visualise your retirement

Chart your retirement plans. How would you want to live? This gives you an idea of how much you should set aside to meet your vision, and you can adjust this along the way.

Doing this may involve thinking about the area you want to live in (e.g. you may want to move somewhere with a lower cost of living), gradually setting in place the environment you want to have or reducing obligations to enjoy more freedom.

Don’t underestimate the compound effect

Are you maxing out your pension plans? Dipping into your pension fund today and spending this ‘quick cash’ will reduce the total amount of funds you have available in your golden years. Setting aside even a small amount now on a monthly basis can grow into a surprisingly substantial sum twenty years down the road!

Invest wisely and realistically

Have you been making investments based on your risk appetite and personal expectations on returns in the long-run? Don’t be ashamed if you’re not the boldest investor and do not subscribe to the get-rich-quick schemes by some people out there.

If you are cautious by nature, think of it this way: how much money or assets are you OK with losing? Do not invest beyond that amount, so that you always have a rational idea of the living standards you can maintain and future plans you have under your control.

Embrace financial security by:

  • Understanding the risk vs return on your portfolios.
    • What are the possible risks?  What are the worst case scenarios in each type of risk, and is the level of return justifiable?
  • Adopting rational planning and strategy instead of relying on emotions.
    • Are your decisions rational based on your current situation?  Are you making an emotional investment decision?

Research thoroughly

The more knowledge you have in an investment tool, or on a company that you are investing in, the lesser your risk will be.  Knowledge helps to mitigate risks and enables better decision making.  Some research information to look out for:

  • Management team
  • Review past performance and current performance.  Study the factors that contribute to exceptionally good performance or a sudden drop in performance
  • Read all the financial documents, these include quarterly reports, annual reports, investors presentations
  • Study industry trends
  • Read expert opinions and public reviews

Consult a professional

If all the above feels complex or a handful, or if you lack the time to sit down on your own and figure this out, consult a financial planning professional. S/he can help you see the bigger picture, make well-defined and realistic plans, plus help you stay on track to meet your goals. You might also gain fresh knowledge on personal finance in general, which can equip you to make decisions more easily on your own.

You have worked so hard to establish your career, achieve your current lifestyle and keep your family happy. Now that you have these milestones behind you, get started on planning for a comfortable retirement!

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Will China Lose it’s ‘World Factory’ Status with Shrinking Global Demand Threatened by the Coronavirus Pandemic?

This article was originally published by 中信出版集团 (ID:  citicpub)

A sudden pandemic and it’s continuous changes have evolved into a global public crisis. In addition to the capital market, which has been deeply affected, there is also an industry that has also experienced considerable fluctuations in this pandemic. It is — China’s manufacturing industry.

In this crisis, we are seeing two extreme sides of the Chinese manufacturing scenes.  On one hand, the manufacturing industry is showing the speed of China and the superb efficiency where an automobile factory turned into a mask factory.  On the other hand, massive delay in production leads to the departure of foreign funded factories and rising costs.   Also the uncertainties in production schedules has resulted in loss of orders.

According to reports, although the work resumption rate in Yangtze River Delta and Pearl River Delta has reached more than 90%, there is very little real work, especially for export-oriented industries, which are hardly receiving orders due to foreign pandemic conditions.

If there is a word that can describe the current situation of China’s manufacturing industry, it is ‘pressure’, and a tremendous amount of pressure!

But in times of trouble, there are opportunities.

How does a car factory turn into a mask factory in just 76 hours?

Due to the escalating pandemic spread, masks became a tight supply commodity. To meet the large demand for supply, many factories turned into mask factories. Automotive maker SAIC Wuling, not only manufactures the Wuling brand masks, but also goes one step further and invented mask production machines.

Automaker Wuling turn it’s auto factory into mask making factory to help ease a tight demand in market supply

Wuling brand mask packaging with the wordings ‘Whatever the people needs, Wuling will produce.’

Why are the car factories, diaper factories, mobile phone foundries, shoe factories, which are all seemingly unrelated yet are all able to switch to mask factories in just a few days?

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Wu Ling brand mask

Before answering this question, let’s look at a small example.

Prior to the pandemic, global mask production was 40 million, of which 20 million were produced in China, 10 million in South Korea, 5 million in Japan, and 5 million in other countries.

When the pandemic hit China, most factories were shut down due to the Spring Festival. Faced with a surge in demand, mask factories in South Korea and Japan should accelerate the production of masks, but in fact, the production of masks in Korea and Japan was also late. Why is that so?

This is because almost all the nasal bridge strips required for masks in the world are produced in the PRD region of China. Without a nasal bridge strip, a complete mask cannot be produced at all.

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Above: the nose bridge strip is almost only produced in China

There may be questions such as the since the nose bridge is such a simple accessory in the mask, therefore why can’t South Korea and Japan produce this?

But this is not the case, the reason is that the nose bridge strip is too simple and cheap.

Well, the logic behind doing business is to either sell at a high price to make a profit, or to take a small profit and sell more. The nose bridge strip is obviously the latter. And when it comes to volume, it depends on the market size. Which country in the world can scale with the Chinese market?

Therefore, Chinese nose bridge manufacturers can keep the prices extremely low and the market competitiveness is strong. Japan and South Korea can’t make money making nose bridge strips, and naturally they won’t do it.

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China ’s super-large scale has created a strong cost control capability, with a “cost black hole” effect, that is, those extremely basic parts may not be available in other countries, but it will certainly be available in China, and it is also the cheapest!

Masks, in many people’s perceptions, are products with little technical involvements, but the production of a mask ranges from the most upstream oil, to the separated polypropylene, spunbond, melt blown cloth, to the bridge of the nose and ear bands, to the sterilization rooms.  There are dozens of industrial chains involved in the process of making a mask.  Additionally, they need the support of logistics, plant, power and other infrastructure.

Behind a small mask is a huge modern industrial system. From upstream to downstream of mask production, this supply chain is complete in China.

On 2nd March 20202, the China News Network published a piece of news which says mask production in China broke it’s own record with 1 billion pieces produced per day.

Why, during the epidemic, almost any manufacturer can be transformed into a mask factory overnight, making the production capacity of masks soar in a short time to more than 100 million per day?

Speculations of a shift in China’s manufacturing industry, is this a false proposition?

Discussions about China’s manufacturing shift have been ongoing. For example, Samsung closed its Chinese factory and moved to Vietnam, Apple built a US $ 1 billion factory in India.  With media reports of similar news, it seems that many multinational companies are gradually shifting their supply chains from China to Southeast Asia.

After the pandemic, more and more voices are beginning to worry that China will lose its “world factory” status and companies will accelerate the relocation of factories overseas.

The U.S. Secretary of Commerce even said that the Chinese pandemic would help manufacturing return to the United States.

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So, in recent years, has China’s manufacturing industry migrated overseas (Southeast Asia, especially Vietnam or India) on a large scale? Is the status of Made in China no longer guaranteed?

In order to clarify these issues, in 2019, Mr Shi Zhan, Director of the Center for World Political Studies and the author of “Overflow” and “Pivot”, and his team conducted an in-depth research on Vietnam, visited local industrial parks, the Chinese Chamber of Commerce, and visited the local entrepreneurs, grassroots officials, scholars and also consulted Vietnamese economists.

From the perspective of Shi Zhan, the transfer of China’s manufacturing industry is actually a pseudo-proposition. Some manufacturers build their factories in South East Asia because of expansion and not a shift of business from China.

First of all, it must be acknowledged that a certain amount of production capacity has indeed gone to other countries. However, the transfer of this small number of factories did not begin in the last two years, nor did it begin during the pandemic period. In fact, this happened much earlier.

Because many upstream brands do not want to rely too much on a single factory, in simple terms, they don’t want to put all eggs in one basket. For manufacturers, this transfer is part of a long-term and reasonable strategy to increase efficiency and reduce risks.

After this pandemic, more foreign companies may want to averse the risk of focusing production solely in China, hence it is practical to spread production or related operations over multiple countries.

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Foxconn’s factory in India

This is a realistic problem that the Chinese manufacturing industry will face, but the impact may not be very significant because what can be transferred out are the first and second-tier contractors.  Operations that are further down the supply chain will be harder to transfer out.  Lower operations in the supply chain are more specialized and more dependent on the collaborative needs in the supply chain network.  They cannot be moved out unless the entire network is transferred out altogether.

Are there countries that can take over the entire network from China? In recent years, there has been a sudden rise of various manufacturing hubs across South East Asia. What about Vietnam?

In the first quarter of 2019, US imports from Vietnam soared 40% year-on-year, while Vietnam’s GDP grew by 7.9%.

In addition, Vietnam has ample population, cheap labor, ports, and low tariffs. It seems to be a good place to build factories and trade.

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But if we look deeper, we will find that Vietnam is still China’s largest import market. This means that most of the “Made in Vietnam” raw materials are not produced locally, but shipped from China.

For example, when producing a sofa in Vietnam, 90% of the leather material comes from Jiangsu, 80% of the sponge comes from China; more than 90% of the plywood used in the production of furniture comes from Linyi, Shandong; 60% of the hardware supporting the furniture comes from China, which are imported and processed into hardware locally in Vietnam.

Due to the inability of the Vietnamese industrial chain to be self-sufficient, during the pandemic period, most of the factory’s stocks of auxiliary materials were only enough for production in January. Previously, due to insufficient raw material inventory, 16,200 factories in Vietnam had suspended operations.

So why doesn’t Vietnam produce raw materials itself?

This is because it does not have heavy industry systems such as metallurgy, steel, chemicals, materials, and energy production. The heavy industry system consists of high investment, low profits, and a very long payback period. It is difficult to develop without the government massive capital investment and support.

From a micro perspective, Vietnam’s labor market is also very different from China’s.

The Chinese have become accustomed to large-scale population migration, and a large number of migrant workers have come to work in coastal areas from inland provinces. Vietnamese people are generally used to looking for work near their hometown, and not many people will move across to other provinces to work. In addition, compared to Chinese, Vietnamese are not very aggressive in the pursuit of career advancements.

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Samsung factory in Vietnam

Although Vietnam has a sufficient labour supply, human resources are still a problem due to the lack of high-quality workers.  Also, the productivity of Vietnamese workers are too low .

Although manufacturing seems to be prevailing, Vietnam has a huge gap with China in terms of population, economy, high-quality infrastructure, the scale of outstanding engineers, and the scale of qualified college students and skilled workers produced each year.

Some companies have moved back to China because of the poor quality and production efficiency of Vietnamese workers.

When asked “Is Vietnam likely to replace China’s World Factory status?”

Felix, Dean of the Institute of Economics and Policy of Hanoi, Vietnam, responded firmly:

“This is impossible! Vietnam is too small. The best we can do is to find Vietnam’s comparative advantage in our economic ties with China, embed ourselves in a suitable position, and take advantage of China’s tailwinds. “

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Therefore, the prosperity of Vietnam’s manufacturing industry is not driven by the outward migration of China’s manufacturing industry, but the external diffusion of China’s manufacturing industry, or “overflow”.

That is, China “outsourced” some of the assembly links in the supply chain to Vietnam, leaving domestic space to industries with higher added value.

The unparalleled supply chain system that supports China’s manufacturing industry

When it comes to China’s supply chain or industry chain, it’s actually not a chain, it would be more accurately referred to as a network. Only by truly understanding this network then can we understand Made in China.

The network, as its name implies, is a large network with multiple “nodes” that intertwined.

The strength of China’s supply chain network is not only due to its large scale, full range and fast logistics, but also because of many outstanding supplier companies in China, which can produce extremely high-quality parts and semi-finished products at lower costs.  These “intermediate products” are not only sufficient in China, they can also be exported to the world.

Today, more than 70% of global trade is semi-finished parts.

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In China, there are many small towns that we may not have heard of, but each are expert producers in certain fields.

These small towns are often the production bases of a certain product or an industry in the country or even the world. They are all nodes on the Chinese supply chain network. Thousands of nodes are linked together, forming a network like Lego blocks, and supporting the huge network of China’s supply chain.

  • Nearly 1/3 of the world’s guitars are produced in Weifang City, Shandong Province
  • Nearly one-third of the world’s and almost half of the country’s swimwear are from Xingcheng, Huludao City, Liaoning Province;
  • 1/3 of the national badminton and supplies to the world are produced in Jiangshan City, Quzhou, Zhejiang Province;
  • More than 85% of the country’s steel tape and more than half of the world’s steel tape measure are produced in Shaogang Town, Yucheng County, Shangqiu City, Henan Province;
  • More than 70% of the national and more than 40% of the world’s decorative oil paintings are produced in Shenzhen Dafen Oil Painting Village;
  • 70% of the world’s lighters are produced in Shaodong City, Hunan Province

The list can go on, there are too many things beyond our imagination.

Maybe you will doubt that these are low-tech products which are nothing great. But if you think about it, you can buy a 5 meter long steel tape measure for 3 or 4 yuan on Taobao. After removing the profit of each link, the production cost of the steel tape measure generally does not exceed 1 yuan.

The production of steel tape measure does not have any technical element to it, but the ability to control costs is not due to the “low technology” factor. The production of steel tape has a complete and mature supply chain system behind it, with an extremely powerful upstream and downstream supporting capabilities.  Thus, every step can be meticulously divided and interlinked to make the finished products

Without this supply chain system, steel tape measure can still be produced, but the cost cannot be controlled so low.

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Although now China’s labor and land costs are no longer so advantageous, these industries still have strong cost control capabilities.

In China, Apple’s supply chain is almost within a 24-hours driving distance; however, many parts of Foxconn’s factory in India still depend on shipments from China thousands of kilometres away. Therefore, although Foxconn is actively building factories overseas, 75% of its production capacity is still in the Mainland.  This strong competitiveness reflects the strength of the entire system.

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Foxconn’s factory in China

It is almost impossible to transfer out any of the manufacturing supply chain system, because no country or region in the world has sufficient production capacity and market volume to undertake the scale.

Therefore, Shi Zhan said, “Which country overseas has the pre-requisite market conditions to undertake such a large-scale supply chain network transfer? In an era of economic globalization, if you only transfer factories without the supply chain network, it will not constitute a substantial transfer.”

It is not difficult to transfer a factory, but it is not easy to transfer an entire manufacturing eco-system. The devastating impacts of this pandemic on China’s economy is unquestionable, but yet no other countries have gained the ability to take on China’s manufacturing network ecology.

In fact, in the long run, if China’s manufacturing industry wants to move up the value-added industrial chain, it is also necessary to transfer out part of the production links with high labor costs and low profits.

The pandemic has brought all industries across the country to a standstill. It is not easy for any industry to move from stagnation to recovery. The pandemic may have crushed out some businesses; however, market demand still exists and has not disappeared.

These collapsed companies still have their assets, equipment, skilled workers, engineers, and managers. As long as the demand is still there, these companies will be absorbed by the surviving companies, which will rebuild them to be even better than before.

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For businesses that have to shut down due to the pandemic, the entire process is very harsh.  Yet the collapse of some businesses doesn’t mean that China’s manufacturing industry has collapsed.

Under an ongoing pandemic, any information can affect our judgement.  To an individual, it is hard to judge something that is continuously changing, when the dust settled our judgement will be clear.

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Impacts of the Wuhan Coronavirus on China’s Economy

How will the Wuhan coronavirus affect China’s economy? Which industries will be most affected, and which assets will usher in a bottoming rebound?

This article is translated and republished from China Investment Network       

1 Feb 2020: In the early morning of January 31, the World Health Organization (WHO) announced that the Wuhan coronavirus 2019-nCoV was listed as an international health emergency. However, WHO does not recommend the implementation of travel and trade restrictions.  The Wuhan coronavirus outbreak that has started in Wuhan has lasted for more than a month, and is still spreading. According to the National Health and Health Committee, as of 24:00 on January 30, a total of 9692 confirmed cases of new-type coronary pneumonia were reported, of which 1,527 were severe cases, 213 were fatal cases, and 171 were cured and discharged; 1982 confirmed cases were newly added on the day.

In the stock market, class A shares are in the period of lunar new year market break, thus the impact of the coronavirus on A-shares has yet to be seen. However, it is undeniable that the impact of the epidemic on macroeconomics cannot be ignored. The impacts on overseas capital markets and commodity markets are showing with the Asia-Pacific, European and American stock markets all falling across the board.

With the severe coronavirus scare, people’s mobility are reduced, businesses and production sites have been forced to close or delay opening. At the same time, many cities have announced plans to delay their start work dates. The series of actions will weaken economic activities at large and affect the macroeconomic development. Service demands and local consumption are inhibited; production, investment, and exports have been hampered; unemployment may have risen; and GDP growth has slowed.

The first to be impacted is local consumption. Due to the concentrated outbreak of the coronavirus during the traditional Chinese New Year holidays, the industries most affected in the short term are the service industry, especially the transportation, tourism, catering, and entertainment industries. The growth rate of the tertiary industry will be impacted, eventually lowering the growth of consumption. During the SARS period, consumer consumption fell by nearly 6 percentage points year-on-year.

Taking the transportation service industry as an example, on January 28, the Ministry of Transport announced that on January 27, railways, roads, waterways, and civil aviation nationwide sent 16.267 million passengers, a decrease of 68.3% over the same period last year. Among them, the number of passengers sent by railway was 3.463 million, down 62.2%; the number of passengers sent by road was 11.46 million, down 70.3%; the number of passengers sent by water was 283,700, down 83.6%; and the number of passengers sent by civil aviation was 1.006 million, down 42.8%.

The impact of the coronavirus on dining and entertainment is also very significant. In Beijing, the KTV entertainment venues represented by Mai Song are temporarily closed. Beijing ’s most famous food street, the Qiong Street is usually crowded especially during the public holidays. In stark contrast, it has only few pedestrians now. Restaurants are forced to temporarily suspend their business to prevent the spread of the epidemic. These impacts will be reflected at the macroeconomic level, that is, GDP and growth rate, and even employment.  The consequences of the Wuhan coronavirus on the secondary industry should not be underestimated. While restricting the movement of the population, the operations of companies are also affected, resulting in chained consequences of lower productivity and industry performance.

In addition, China is the world’s largest exporter of merchandise. Some countries and regions will reduce or suspend the import of goods considered as connected to the epidemic. This will have a certain negative impact on China’s export commodity manufacturing industry.

The Wuhan coronavirus has disrupted China’s already-opened industrial expansion and economic progression. Zhang Ming, chief economist of PingAn Securities, believes that the outbreak may affect both the supply and demand of consumer goods. On the other hand, considering the adverse impact of the pneumonia epidemic on industrial enterprises, the restocking cycles of industrial enterprises may be delayed, or become lesser, which means that the recovery of PPI (industrial price index) growth may be delayed.

As for the impact of the epidemic on GDP growth, Li Xunlei, chief economist of ZhongTai Securities, believes that the main impact of the new crown epidemic on the Chinese economy is in the tertiary industry, and the annual impact is estimated to be about one percentage point. The negative impact of GDP growth may exceed 0.5 percentage points.

Zhang Ming believes that if we do not consider further development of macroeconomic policies, the economic growth rate in the first quarter of 2020 may be about 1 percentage point lower than the previous forecast. The GDP growth rate in the first quarter of 2020 may be around 5.0%, and the possibility of less than 5.0% is not ruled out. The annual economic growth rate may be around 5.7%.  In Tianfeng Securities (6.400, -0.18, -2.74%), the macro team believes that if the epidemic situation cannot be effectively controlled in the short term, lowered consumption and productivity may affect economic stabilization in stages, and the real GDP growth rate may fall below 6 in the first quarter.

In addition, rating agency Standard & Poor’s made a “preliminary assessment” that Wuhan coronavirus could reduce China’s GDP by 1.2 percentage points.

However, some domestic economists have expressed optimistic views. Wei Shangjin of Fudan University believes that the impact of the pneumonia incident on China’s GDP will be about 0.1%.

Huang Yiping, a professor at the National Development Institute of Peking University, believes that these shocks happened at a sensitive time. Economic growth has clearly declined in 2019, but GDP was still maintained around 6%. With the new Wuhan coronavirus, the downward pressure on economic growth in the first quarter of 2020 will increase again, which will inevitably directly affect the Chinese people’s day-to-day living (73.500, -0.54, -0.73%) and investor confidence. Therefore, while the government is working hard to control the epidemic, it should also consider adopting some policy responses.

Regarding the government’s response, Li Xunlei said that in order to deal with the negative impact of the new crown epidemic (the black swan) on the economy, it is necessary to re-adjust the established fiscal and monetary policies in 2020. Assuming that the epidemic will drag down GDP growth by 1 percentage point under pessimistic expectations, then about 500 billion yuan of investment and consumption will need to be hedged to achieve a steady growth effect.

Li Xunlei suggested that the scale of fiscal expenditure should be expanded, and the proposed fiscal deficit rate should be increased from 2.8% in 2019 to 3%, that is, increase fiscal expenditure of about 200 billion yuan; in terms of monetary policy, a stable and loose monetary policy should be implemented. It is necessary to consider cutting interest rates quarterly, and to increase the target for lowering the interest rate throughout the year to promote new investment or local consumption.

There are also many economists calling for tax cuts for SMEs to reduce corporate burdens.

Capital and Commodity Markets: Slump and Retracement

In response to the epidemic, the General Office of the State Council decided to extend the Spring Festival holiday to February 2 and February 3 to officially resume work. Subsequently, the Shanghai Stock Exchange and the Shenzhen Stock Exchange announced on January 27 that the 2020 Spring Festival will be closed until February 2 (Sunday), and February 3 (Monday) will be opened normally.

It is worth noting that on the last trading day before the Spring Festival (January 23), the market experienced a panic-stricken sell-off, with 9.3 billion funds flowing out of Beijing, and the Shanghai Stock Index and Shenzhen Stock Exchange Index falling by 2.75% and 3.52% respectively. From a global perspective, peripheral stock markets and commodities outside the market are generally worried that the epidemic will cause the Chinese economy to plummet.

The most direct impact on the Chinese stock market and investor sentiment is naturally the Hong Kong stock market. On January 29, the Hong Kong stock market opened for trading. The Hang Seng Index plunged 2.82% on the day and continued to plunge 2.62% on the 30th. Over two days it plunged to 1500 points, a decline of 5.37%.  Another important index future that Chinese investors pay special attention to is the FTSE A50 futures, the index futures trading most active February contracts ‘performance were very bleak. Following a 5.64% plunge on January 27, it plunged 3.28% again on January 30.

In terms of US stocks, the three major US stock indexes, the Dow Jones Industrial Index, the Nasdaq Index, and the Annotated Poole Index, each experienced varying degrees of decline. On January 27 (Monday), US stocks opened sharply lower. At the close, both the Dow Jones Index and the S & P 500 fell by 1.57%, and the Nasdaq also fell by 1.89%. Under the weak market, China’s stocks fell, Alibaba closed down 3.87%, JD.com closed 4.8%, Baidu closed down 2.86%, Weibo fell 0.96%, Pinduoduo fell 2.01%, Weilai Automobile fell 13.95%, NetEase fell 1.84%. Large U.S. technology stocks also fell across the board, with Apple down 2.94% and Amazon down 1.79%.

Although European stock markets have not been hit as much as US stocks, from the perspective of German DAX, British FTSE 100, and French CAC index, they have all declined by about 3 percentage points.

The economic slowdown will also affect commodity markets. However, the demand for the commodity market has different performances due to economic impact. Specifically, from January 19 to January 29, 2020, crude oil and industrial metals fell more than the stock market, of which ICE cloth oil and LME copper dropped 10% and 9.77%, respectively. The market performance of crude oil and industrial metals is highly dependent on economic expansion.

A senior commodity practitioner said to China Investment Network that the Wuhan epidemic has a very direct impact on commodities because commodities are located upstream and midstream of the entire industry chain, also the commodity market has strong global linkages. The short-term negative impact of this epidemic on commodities is relatively large, and it is typically represented by commodities such as iron ore, rubber, and copper.

Taking iron ore as an example, the SGX Iron Ore 2002 contract started to decline on January 23, and fell more than 12% in six trading days as of press time. The above industry experts believe that the core reason for the decline is the short-term stagnation of economic activity affecting the demand for commodities, such as iron ore as a raw material for steel. If the start work time after the Spring Festival is further delayed, and the construction activity lags, then traders and steel mills will face great pressure with their ready stocks. When there is stock dumping, the price of iron ore will be further reduced. “But then demand will gradually rise as the epidemic eases. The best indicator of observed demand is the number of newly diagnosed patients. When the figure turns downward, demand and the price of various assets will rise, probably in March-April. The conclusion is that demand will not disappear, the epidemic will have a smaller impact on the economy as a whole, but a greater impact on the momentum of growth. “

Hedge assets such as gold are different. Against the background of economic slowdown, it is possible to usher in loose monetary policy. As safe-haven assets, gold and U.S. Treasury bonds saw price increases over the same period. From January 21st to 29th, the New York Mercantile Exchange gold futures rose 1.37%; during the same period, the yield on 10-year U.S. Treasury bonds fell by 24bp to 1.60% (the rise in the price of Treasury bonds represents a decline in yields).

The external market performance will eventually be reflected in the performance of class A shares, affecting investor sentiment and behavior. Many investors expressed concerns over market movements after the holiday. However, institutional perspectives are not pessimistic. Yang Delong, chief economist of Qianhai Open Source Fund, said that after the holiday, the trend of the class A shares depends on the spread of the epidemic, but in the medium and long term, the epidemic will not change the market dynamics of class A shares. He thinks that if the market pulls back a lot after the holiday, it is precisely the time to buy in undervalue high-quality stocks.

Anxin Securities believes that the short-term negative impact on the stock market may be less than 10%, or even lower; the medium-term impact on the stock market is small; the market trend is closely related to the number of cases, and the inflection point of case decline will be the inflection point of market repair.

Everbright Securities (12.400, -0.48, -3.73%) said that historically, the emotional impact of epidemics has been short-term. For class A shares, although the adverse news of the epidemic may cause the market to fall in a short period of time, the continuous decline of the market often does not exceed one or two weeks, and then rebounds often occur. Even if SARS had a short-term impact on the economic growth of Q2 in 2003, it did not change the cyclical upward trend determined by fundamentals. For the moment, we should pay close attention to the fundamentals’ trends without excessive panic.

Some investors directly compared the impact of the Wuhan coronavirus incident on the capital market with the 2003 SARS. However, most agencies say this is inappropriate. Although the two incidents directly affected industries such as transportation, tourism, and consumption, the current Chinese economy is not structurally the same as in 2003.

Li Xunlei said that in 2003, China’s economy was in a high-growth stage with heavy industrialization, urbanization, and consumption upgrade. There was with sufficient upward momentum back then. Today, China is in a critical period of supply-side structural reform and economic transformation, and the impact of the Wuhan coronavirus may lead to new problems.

The Wuhan coronavirus will significantly impact dining, tourism, and consumption. From the perspective of economic structure, consumption has contributed more than 60% to China’s economic growth. The consumption and service industries also support China’s employment. The impact of the pneumonia incident on the economy, especially on the capital market, is not completely comparable to 2003.

How does the Wuhan coronavirus affect industry performance?

Under the epidemic, medical stocks were on a binge. The Hong Kong-listed China Medical Group surged 18 times in two trading days because its affiliates could produce products to suppress the pneumonia epidemic. Since the outbreak, Lukang Pharmaceutical in the class A-share market (11.390, 1.04, 10.05%) has exceeded 70% in value. Anti-virus mask concept manufacturers stocks are soaring above stock market value.

There are also organizations that are optimistic about the future of China’s “home” economy, which will ultimately affect the performance of express delivery, games, and online education. New Oriental Online announced that it will provide 1 million New Oriental Online Spring Class live broadcast courses to primary and secondary school users nationwide for free. There are also several educational institutions offering free online courses for Wuhan students.

However, some brokers have expressed concerns about the recent rise in the pharmaceutical sector, which has been affected by the epidemic. The research report of Zheshang Securities (10.570, -0.65, -5.79%) wrote that the outbreak or the catalyst of a phased turn in the market for the medical and biology sectors is good in the short term, but it will not be continuous. Looking back on the several stages of the SARS epidemic that rose from the outbreak to the fall, the market for medical organisms only appeared in the outbreak period, and lasted less than a month in April.

From a wider industry perspective, the adverse impact of the epidemic will eventually affect the capital markets, which includes consumption (accommodation, tourism, catering, etc.), infrastructure (construction machinery, transportation investment, power heating, etc.), transportation (railway, airplane, road transport, etc.), film and television, etc.

Aviation Industry

Due to peoples ‘reduced mobility, the major epidemic has had a greater impact on the aviation industry.  In terms of airports, looking back to the SARS period, when the epidemic broke out, the passenger throughput and take-off growth rate of airports across the country significantly decreased. Taking the Capital Airport as an example, the passenger throughput in May 2003 fell by 86.54% year-on-year. The number of flights dropped by 65.51% year-on-year.

Compared with airports, the epidemic situation has a greater impact on airlines. At present, the Civil Aviation Administration has required that airlines and its ticket sales agency provide refunds to passengers who have previously purchased civil aviation tickets starting at 00:00 on January 24, 2020. Refunds shall be processed free of charge. At present, many airlines have suspended flights to and from Wuhan and gradually reducing the capacity of international flights.

With reference to the SARS period, the passenger traffic of civil aviation in China in the second quarter of 2003 decreased by 48.9% year-on-year. In May of that year, the number of domestic flights, international flights, and Hong Kong and Macao regional flights decreased by 59.3%, 69.7%, and 80.6% respectively. The impacts of SARS on airlines: Air China (8.250, -0.38, -4.40%) Cumulative loss in the first three quarters of 822 million yuan, China Eastern Airlines (5.100, -0.18, -3.41%) Net loss in the first three quarters of 1.193 billion yuan, China Southern Airlines (6.430, -0.25, -3.74%) Net loss in the first three quarters was 783 million yuan.

Aviation stocks fell significantly within two trading days from January 20-21, Air China (00753.HK) plummeted 12.58%, China Eastern Airlines (00670.HK) plummeted 12.15%; China Southern Airlines ( (01055.HK) plunged 11.24%, while Cathay Pacific (00293.HK) fell 5.98%. In addition, when the Hong Kong stock market opened on January 29, aviation stocks fell across the board.

Bank of America Securities issued a report saying that in response to the outbreak of Wuhan coronavirus, the mainland aviation industry will be affected in the short term. Both Air China and China Southern Airlines ’investment ratings were downgraded to “underperform”, reducing Air China ’s target price from HK $ 9.25 to HK $ 6.15. China Southern Airlines’ target price has dropped from HK $ 6.15 to HK $ 4.4.

After the SARS epidemic ended, the aviation sector picked up significantly. Take China Southern Airlines Hong Kong shares as an example. Since the first SARS case broke out on November 16, 2002, China Southern Airlines Hong Kong shares have shown a downward trend, falling to HK $ 0.82 on April 28, 2003, a drop of 29%. However, when the epidemic situation was under control, the stock price rose to HK $ 2.58 on February 23, 2004, an increase of 121%, with a considerable rebound.

China Merchants Securities (18.750, -0.77, -3.94%) believed that the current market sentiment has reflected in the airport aviation industry. Historical experience has proven that the related shares rebounded significantly after the epidemic was eliminated. As of now, it has investment value for long-term investors.

Tourism Industry

With the gradual development of the Wuhan coronavirus, the mobility of domestic travellers has reduced. At the same time, the suspension of visas to Chinese citizens in many countries will reduce the number of tourists and the total tourism revenue. During the outbreak of SARS in 2003, domestic tourist arrivals fell by 0.9% and total tourism revenue fell by 11.2%.

The above impacts are reflected in the stock price: Fosun Cultural Tourism (01992.HK) and Ctrip (TCOM) both fell sharply during the outbreak. Ctrip started to fall sharply on January 21, and fell 7.91% and 6.89% on January 24 and January 27, respectively, and then rebounded on January 27. The latest trading day closed at 32.86 yuan. The closing price before the outbreak was 38.94 yuan, which fell more than 18% in just 7 trading days.

The hotel giant Huazhu (HTHT) also recorded a huge drop of 10.56% on January 21; Fosun Cultural Tourism also did the same: three consecutive trading days since January 24, with a cumulative decline of 13.9%.  Subsequently, Fosun Travel News announced that based on the progress of the current epidemic situation, it is expected that the Group’s revenue from the operation of resorts and tourist destinations in Mainland China, as well as tourism and leisure services and solutions, will be greatly affected in the near future. The revenue from tourism operations outside China is expected to account for about 87% of the company’s total tourism operating revenue in 2019. It still maintains a good momentum and impacts of the Wuhan coronavirus is expected to be limited.

Ctrip co-founder Liang Jianzhang said in an interview with the media that SARS almost stopped the entire industry in that year, but the impact came quickly and disappeared quickly. In December 2003, one month after the end of SARS, the tourism industry bounced back tremendously. Ctrip’s business volume rebounded sharply. He believes that the epidemic may mainly affect the first quarter. In fact, the first quarter of the tourism industry is relatively off-season, especially in February and March after the Spring Festival, which is not the most critical operating stage. Therefore, the impact of the whole year is expected to be relatively controllable.

Film and Television Industry

As the outbreak occurred during the Spring Festival, and due to the decrease in entertainment activities and the simultaneous announcement of the closure of movie theaters, this meant a “failure” of the Spring Festival for major movie companies across the country. This which would have a huge impact on annual performance. .

In 2019, the box office of Mainland China’s movies was 64.149 billion yuan. During the Spring Festival that year (the first day of the new year from February 5th to the fifteenth day of February 19th), the box office in just 15 days reached 9.484 billion yuan, more than 1/7 of the annual box office.

In 2020, the Chinese New Year film blockbuster films include “Chinatown Detective”, “Manslaughter”, “Jiang Ziya”, “Aunt”, etc., involving many producers and distributors. The list includes major listed companies Wanda Television, Light Film, Happy Media, Hengdian Film (15.970, -0.48, -2.92%) Wentou Holdings (3.300, -0.07, -2.08%) , Huaqiang Fangte, Happy Blue Ocean (6.790, -0.36, -5.03%) and so on.
Previously, the entertainment companies had expected the box office of the Spring Festival film to grow significantly year-on-year. Everbright Securities expects that the box office at the Spring Festival in 2020 will achieve high growth under a “low base”. The box office year-on-year growth is expected to be in the 25% -35% range. Spring festival movies returns are expected at 7.62 billion yuan, an increase of 29.8% year-on-year. But the sudden outbreak of the Wuhan coronavirus made the above figures disappeared.

According to Cat’s Eye data, on January 24th (New Year’s Eve), the total box office in the mainland movie market was only 3.29 million, compared with 41.75 million at the same period last year, a 92% year-on-year decrease. On January 25 (the first day of the Chinese New Year), the box office was only 1.81 million, and the box office in the same period of 2019 was as high as 1.458 billion.

Within two trading days from January 20-21, Huanxi Media (01003.HK) plunged 13.99%, Cat’s Eye Entertainment (01896.HK) plunged 15.63%, and Ali Pictures (01060.HK) plunged 10.51%. Subsequently, in the first trading day of Hong Kong stocks, the film and television entertainment sector led the decline.

Food and Beverage Industry

There is no doubt that the epidemic will hit the food industry. The reduction of parties and eating out directly led to a decline in industry. Many food related companies have announced closures.  An investor told China Investment Network that there were few pedestrians on Beijing’s most famous food street, which is completely different from the booming business and crowds during previous holidays. Many restaurants have now announced that they have suspended their business.

From the perspective of listed companies, Haidilao (06862.HK) announced on Sunday (January 26) that all its stores operating in the Mainland were suspended until Friday (January 31). According to statistics, as of the end of June last year, Haidilao operated nearly 550 restaurants in the Mainland, accounting for nearly 93% of the total number of restaurants operated by the company. Data shows that Haidilao’s stock price has fallen sharply since January 20 by nearly 17%.

For Jiu Mao Jiu International (09922.HK), which has been listed in Hong Kong for less than half a month, its main brand Taiji Sauerkraut Fish also announced that all its stores have been closed until Thursday (January 30). “Tai Er” is the largest pickled fish restaurant in the Mainland, with a total of 121 stores.

Jiu Mao Jiu International’s stock price has fallen sharply since January 17. Since January 20, it has fallen more than 17%.
In addition to the above industries, the epidemic will also affect clothing, retail and other industries. From an economic perspective, the impact of the epidemic on the economy is ultimately reflected in the value of the RMB. During the Spring Festival, offshore RMB quotes depreciated by 1,400 BP, a decline of 1.75%, which will ultimately affect the market value performance of listed companies in China’s import and export industry.

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Regulations for the Implementation of Foreign Investment Law of the People’s Republic of China

Translated by Lingyun Gao (Professor of Law, Fudan University)

Chapter I General Provisions

Article 1

This Regulations is made under the Foreign Investment Law of the People’s Republic of China (hereinafter referred to as the “Foreign Investment Law”).

Article 2

The State encourages and promotes foreign investment, protects the lawful rights and interests of foreign investors, regulates foreign investment administration, continues to optimize foreign investment environment, and advances a higher-level [market] opening.

Article 3

The “other investors” mentioned in items 1 and 3, paragraph 2 of article 2 of the Foreign investment Law include the natural persons of Chinese nationality.

Article 4

The negative list for foreign investment entry (hereinafter referred to as “the negative list”) is formulated by the department under the State Council in charge of investment, jointly with the department under the State Council in charge of commerce and other relevant departments, and submitted to and issued by the State Council, or issued by the departments there under in charge of investment and commerce after being approved by the State Council.

The State adjusts the negative list in a timely manner to satisfy the needs for furthering the opening up [policy] and economic and social development. When adjusting the negative list, the procedure provided in the preceding paragraph shall apply.

Article 5

The departments under the State Council in charge of commerce and investment and other relevant departments there under work closely, co-cooperatively, and jointly to accomplish the promotion, protection, and administration of foreign investment according to division of their responsibilities。

The local people’s governments above the county level shall strengthen their leadership in promoting, protecting, and administering foreign investment, support and urge the relevant departments to develop, in accordance with law, administrative regulations, and the division of the responsibilities, the promotion, protection, and administration of foreign investment,and timely coordinate and resolve the major issues arising therefrom.

Chapter II Promotion of Investment

Article 6

The government and its relevant departments shall equally treat foreign-invested enterprises and domestic enterprises in funds arrangement, land supply, tax abatement or exemption, qualification licensing, standard setting, project application, or human resource policies.

The policies adopted by the government and its relevant departments supporting the development of enterprises shall be publicized in accordance with law. Where the implementation of a policy involves a matter that the enterprises need to apply for, the government and its relevant departments shall publicize the condition, procedure, and time limit for such application,and treat the foreign-invested enterprises and domestic enterprises equally when reviewing their applications.

Article 7

When issuing an administrative regulation, a departmental rule, or a regulatory document concerning foreign investment, or when the government and its relevant departments are drafting a law or a local regulation concerning foreign investment, the drafters shall, as applicable, seek comments from foreign-invested enterprises, the relevant chambers of commerce, and the relevant associations through various forms including inviting written comments and convening seminars, demonstrating meetings, or public hearings. For those comments and suggestions shared by most people or concerning an issue involving the major rights and obligations of foreign-invested enterprises, feedback on the adoption of the comments or suggestions shall be given in a proper manner.

The regulatory documents concerning foreign investment shall, in accordance with law, be timely publicized, and those not publicized shall not be cited as the basis for administration. A regulatory document closely related to the production and operation of foreign-invested enterprises shall, based on the actual situation, reasonably determine a time frame between its issuing and its implementation.

Article 8

The people’s governments at various levels shall, in accordance with the principle of government-domination and multiparty-participation, establish and improve a system serving foreign investment, and constantly improve the ability and standard of such service.

Article 9

The government and its various departments shall, through its official website or a nationally unified online government-service platform,specify the laws, regulations, departmental rules, regulatory documents, policy measures, and information on investment projects concerning foreign investment,and emphasize publicity and explanation thereof through various methods, to provide consultation, guidance, and other services for foreign investors and foreign-invested enterprises.

Article 10

The “special economic zone” mentioned in article 13 of the Foreign Investment Law refers to a specific area approved and established by the State in which more liberal policy measures of opening for foreign investment are adopted.

The pilot policy measures on foreign investment which are adopted by the State in certain regions and are proved to be feasible, are to be adopted, as applicable, in other regions or nationwide.

Based on the national economy and the needs for social development, the State makes a catalogue of the sectors that foreign investment is encouraged to invest in specific industries, sectors, and regions listed therein. The catalogue for the sectors that foreign investment is encouraged is drafted by the department under the State Council in charge of investment jointly with the department under the State Council in charge of commerce and other relevant departments, and issued thereby after being approved by the State Council.

Article 12

A foreign investor or foreign-invested enterprise may, in accordance with law, administrative regulations, or the rules made by the State Council, enjoy preferential treatments in areas such as finance, tax, financing, and land usage.

A foreign investor who applies income accrued from its investment within China to expand its investment in China shall enjoy, in accordance with law, the corresponding preferential treatment.

Article 13

Foreign-invested enterprises shall equally participate, in accordance with law, in setting and revising the State standard, industry standard, local standard, and group standard with domestic enterprises. Foreign-invested enterprises may, based on needs, make industry standards on its own initiative or jointly with other enterprises.

A foreign-invested enterprise may propose to the administrative department in charge of standard-setting, and may propose comments and suggestions during the periods of approval of the standard-setting project, drafting of the standard, technology examination, and the feedback and evaluation of the implementation of the standard, and engage in standard drafting, technology examination,and other relevant works as well as the translation of the standard into foreign languages.

The department in charge of standard-setting and the other relevant administrative departments shall establish and improve a relevant working system to improve the transparency of and promote the complete publicity of the information on standard-setting and revision.

Article 14

The mandatory standards made by the State shall equally apply to foreign-invested enterprises and domestic enterprises, and [the relevant departments of the government] shall not impose on the foreign-invested enterprises a standard for the technology higher than the mandatory standard.

Article 15

The government and its relevant departments shall not obstruct or restrict a foreign-invested enterprise from freely entering into the government procurement market in the local area or in a specific industry.

The purchaser of government procurement or its agency shall not adopt differentiated or discriminated treatment on foreign-invested enterprises when publicizing procurement information, determining and reviewing the qualification of suppliers, and determining the standard for review thereof.  Neither shall they restrict suppliers through imposing unreasonable conditions, such as restricting the suppliers’ ownership type, organizational form, equity structure, the nationality of the investors, or the brand of product or service, nor differentiate the product manufactured or service provided within China by a foreign-invested enterprise from those manufactured or provided by a domestic enterprise.

Article 16

A foreign-invested enterprise may, in accordance with the Government Procurement Law of the People’s Republic of China (hereinafter referred to as the Government Procurement Law) and its implementation regulations, inquire into or question the purchaser or its agency about a government procurement matter and lodge complaint with the department supervising government procurement. The purchaser, its agency, or the department supervising government procurement shall provide a response or make a decision within the stated period of time.

Article 17

The department supervising government procurement and the other relevant departments shall strengthen the supervision of and examination on government procurement, and correct and punish in accordance with law the activities that treat foreign-invested enterprises differently or indiscriminately in violation of law or regulations.

Article 18

A foreign-invested enterprise may, in accordance with law, obtain financing within or outside China through public offering of securities such as stocks or corporate bonds, issuing other financing securities through either public issuing or private placement, and borrowing foreign debts.

Article 19

The local people’s governments above the county level may, in accordance with law, administrative regulations, and local regulations and within their delegated authority, take policy measures to promote and facilitate foreign investment, such as abatement of fees, guarantee of land-use quota, and provision of public services.

The policy measures purported to promote and facilitate foreign investment taken by the local people’s governments above the county level shall be oriented to promote high quality development, shall be beneficial for improving economic, social, and ecological benefits, and for constantly optimizing the foreign investment environment.

Article 20

The relevant departments in charge shall make and publicize a guideline for foreign investment to serve and facilitate foreign investors and foreign-invested enterprises. The guideline for foreign investment shall include introduction to foreign investment environment, procedure guide lines for foreign investment, information on investment projects, and the relevant data, which shall be timely updated.

Chapter III Protection of Investment

Article 21

The State does not expropriate foreign investors’ investments.

Under special circumstances where the State expropriates the investment of foreign investors for public interests, it shall be proceeded in accordance with the legal procedure and in a non-discriminatory manner, and compensation shall be made timely based on the market value of the expropriated investment .

Article 22

The capital contribution made by foreign investors within China, and the profits, capital gains, proceeds of asset disposal, intellectual property rights’ licensing fee, indemnity or compensation legally obtained, or proceeds received upon liquidation by foreign investors within China, may be freely remitted inbound and outbound in RMB yuan or a foreign currency, and no entity or individual may impose restrictions on the currency, amount, or frequency of inbound or outbound remittance in violation of law.

The salary and other lawful income of foreign employees or employees from Hong Kong, Macau, and Taiwan of a foreign-invested enterprise may, in accordance with law, be freely remitted outbound.

Article 23

The State reinforces punishment on infringement of intellectual property rights, constantly strengthens enforcement of protection of intellectual property rights, promotes the establishment of a fast-track co-ordination protection system for intellectual property rights, improves a diversified system for resolving disputes on intellectual property rights, and equally protects the intellectual property rights of foreign investors and foreign-invested enterprises.

Where a standard-setting involves a patent owned by a foreign investor or foreign-invested enterprise, the relevant provisions on the standard involving the patent shall be applied.

Article 24

An administrative agency (including an organization authorized bylaw or administrative regulations to administer public matters, similarly hereinafter) and its staff shall not compel directly or in a disguised form a foreign investor or a foreign-invested enterprise to transfer technology through implementing administrative licensing, inspection, penalty, coercion,or other administrative methods.

Article 25

Where it is necessary for an administrative agency that is performing its duties to request a foreign investor or foreign-invested enterprise to provide materials or information involving a trade secret, [the materials or information required to be provided] shall be constrained within the scope necessary for the administrative agency to perform its duty, and the access to the materials or information should be strictly controlled and people irrelevant to performing such duty shall not access to the relevant materials or information.

The administrative agencies shall establish and improve an internal administration system and adopt effective measures to protect the trade secrets owned by the foreign investors or foreign-invested enterprises which are obtained during performing of their duties; where the information is required by law to be shared with other administrative agencies, the trade secrets contained in the information shall receive confidential treatment to avoid leakage.

Article 26

The regulatory documents made by the government and its relevant departments concerning foreign investment shall go through compliance review in accordance with the regulations made by the State Council.

Where a foreign investor or foreign-invested enterprise believes that a regulatory document made by a department under the State Council or made by a local government and its departments based on which an administrative activity was conducted is not in compliance with law, it may, in accordance with law, request for a compliance review of such regulatory document when it applies for administrative review of the administrative activity or initiates an administrative litigation.

Article 27

The “commitment on policies” mentioned in article 25 of the Foreign Investment Law refers to the written commitments made by the local people’s governments at various levels and their relevant departments within their legally delegated authority concerning the supportive policies, preferential treatment, and facilitation conditions that apply to foreign investors and foreign-invested enterprises who invest in the local area. The content of such commitments shall comply with law and regulations.

Article 28

The local people’s governments at various levels and their relevant departments shall perform their commitments on policies made in accordance with law to foreign investors and foreign-invested enterprises, and the various contracts entered into therewith in accordance with law, and shall not breach or cancel such a contract on the ground that the administrative division is readjusted, the government officials are re-elected, the agencies or their functions are adjusted, or the relevant persons in charge are changed, etc.  Where the commitment on policies or contract needs to be changed as required for social public interests, it shall be done in accordance with the legal authority and legal procedure, and the damage thus suffered by the a foreign investor or foreign-invested enterprise shall be fairly and reasonably compensated in a timely manner.

Article 29

The local peoples’ governments above the county level and the irrelevant departments shall, according to the principles of publicity,transparency, efficiency, and facilitation, establish and improve a mechanism for foreign-invested enterprises to lodge complaints, in order to timely resolve the issues presented by foreign-invested enterprises or their investors, and to coordinate and improve the relevant policy measures.

The department under the State Council in charge of commerce establishes, with the other relevant departments under the State Council, an inter-ministry joint-conference system concerning the complaints filed by foreign-invested enterprises to coordinate and promote the work concerning complaint made by foreign-invested enterprises to the central government, and to guide and supervise the work concerning complaint made by foreign-invested enterprises to the local government. The local people’s governments above the county level shall designate a department or agency to accept complaints filed by the foreign-invested enterprises or their investors within the local area.

The department under the State Council in charge of commerce and the department or agency designated by the local people’s government above the county level shall improve the rules for the complaining mechanism and the means for lodging complaints, and clarify the time limit for resolving the complaints. The rules for the complaining mechanism, the means for lodging complaints, and the time limit for resolving the complaints shall be publicized.

Article 30

Where a foreign-invested enterprise or its investor believes that an administrative act conducted by an administrative agency and its staff infringes upon its lawful rights and interests, and applies for co ordination and resolution through the complaining mechanism for foreign-invested enterprises, the relevant department may inquire into the concerned administrative agency and its staff about the specific situation while conducting coordination, and the latter shall be cooperative. The petitioner shall be notified in writing about the result of coordination.

Where a foreign-invested enterprise or its investor petitions to resolve a problem through coordination according to the provisions provided in the preceding paragraph, its ability to apply for administrative review or initiate an administrative litigation is not affected.

Article 31

No entity or individual shall suppress or retaliate the foreign-invested enterprise or its investor who lodges a complaint with or petition to the complaining mechanism for foreign-invested enterprises to resolve a problem.

A foreign-invested enterprise or its investor may complain about a problem to the government and its relevant departments through other lawful means, in addition to filing with the complaining mechanism for foreign-invested enterprises.

Article 32

A foreign-invested enterprise may establish a chamber of commerce or an association in accordance with law. Unless otherwise provided by law or administrative regulations, a foreign-invested enterprise may decide autonomously to join in or withdraw from a social organization such as a chamber of commerce or an association, and no entity or individual shall intervene.

The chamber of commerce or association shall, in accordance with law, administrative regulations, or its articles of association, strengthen the self-discipline of the industry, timely report the request of the industry,provide to its members services such as information consultation, publicity and training, market expansion, economic and trade exchanges, protection of rights and interests, and dispute resolution.

The States supports the chambers of commerce or associations to conduct relevant activities in accordance with law, administrative regulations,and its articles of association.

Chapter IV Administration of Investment

Article 33

A foreign investor shall not invest in a prohibited sector on the negative list. For a restricted sector on the negative list, a foreign investor shall comply with the special administrative measures required for entry of the restricted sector, such as the requirement for equity shareholding and qualifications for its senior management officers.

Article 34

Where a relevant department is performing its duties, it shall not grant permit,  register the enterprise,or allow the relevant matters if the foreign investor proposes to invest in a sector listed in the negative list but the corresponding requirements are not satisfied; where an application concerns approval of an investment project involving fixed assets, the approval shall not be issued.

The relevant department shall strengthen supervision and examination of the enforcement of the negative list; if it is discovered that a foreign investor is investing in a prohibited sector on the negative list, or if the investment activity of a foreign investor is in violation of the special administrative measures required for investing in a restricted sector on the negative list, the provisions provided in article 36 of the Foreign Investment Law shall be applied.

Article 35

Where a foreign investor invests in an industry or sector which requires obtainment of a license in accordance with law, unless otherwise provided by law or administrative regulations, the relevant department responsible for implementing the license shall, according to the same condition and procedure applicable to domestic enterprises, review the application of the foreign investor for the license, and shall not impose discriminatory requirements on the foreign investor concerning the conditions for granting the license, application materials, review, time list for review, etc.

The relevant department in charge of implementing the licensing shall, through various means, optimize the service for the review and improve the efficiency of approval. The licensing matters that satisfy the relevant conditions and requirements may be handled by means of making commitment upon receipt of notification in accordance with the relevant rules.

Article 36

Where the foreign investment needs to be approved to filed for the record, it shall be handled in accordance with the relevant regulations of the State.

Article 37

The registration of a foreign-invested enterprise shall be filed with the department under the State Council in charge of market supervision and administration or the duly delegated department of a local government in charge of market supervision and administration. The department under the State Council in charge of market supervision and administration shall publicize the list of duly delegated departments of market supervision and administration.

The registered capital of a foreign-invested enterprise may be represented by RMB or by a freely-convertible currency.

Article 38

A foreign investor or foreign-invested enterprise shall, through the enterprise registration system and the enterprise credit information disclosure system, report investment information to the competent departments in charge of commerce. The departments under the State Council in charge of commerce and market supervision and administration shall integrate and coordinate the relevant systems, and provide guidance for foreign investors or the foreign-invested enterprises to report their investment information.

Article 39

The content, coverage, frequency, and specific procedure of foreign investment information report are determined and announced by the department under the State Council in charge of commerce jointly with the department under the State Council in charge of market supervision and administration and the other relevant departments, based on the principles of actual necessity, high efficiency, and facilitation. The department in charge of commerce and the other relevant departments shall enhance information sharing, and if the investment information is available through the inter-departmental information sharing system, the foreign investor or foreign-invested enterprise shall not be required to submit a duplicate report.

The investment information reported by foreign investors or foreign-invested enterprises shall be true, accurate, and complete.

Article 40

The State establishes a security review system for foreign investment to conduct security review for those foreign investments that affect or may affect the State security.

Chapter V Legal Liability

Article 41

The government, its relevant departments, and the staff thereof,shall assume legal liability in accordance with law and administrative regulations if they have conducted any of the following activities:

(1) making or implementing a policy which does not equally treat foreign-invested enterprises and domestic enterprises in compliance with law;

(2) illegally restricting foreign-invested enterprises from equally participating in the standard setting and review, or imposing a technology requirement on foreign-invested enterprises which is higher than the mandatory standard;

(3) illegally restricting foreign investors from remitting funds inbound or outbound;

(4) failure to honor a commitment on policies made in accordance with law to a foreign investor or foreign-invested enterprise or failure to perform the various contracts legally entered into therewith, making a commitment on policies in exceeding its duly delegated authority, or making a commitment on policies the content of which does not comply with law or administrative regulations.

Article 42

The purchaser in government procurement or its agency, who exercises differentiated or discriminatory treatment on foreign-invested enterprises through imposing unreasonable conditions, shall assume legal liability according to the Government Procurement Law and its implementation regulations; where the bidding result is or may be affected, the Government Procurement Law and its implementation regulations shall apply.

Where the department supervising the administering government procurement has not made a timely decision on the complaint filed by a foreign-invested enterprise, the directly responsible person in charge and other responsible staff shall receive sanctions in accordance with law.

Article 43

Where an administrative agency and its staff compels directly or in a disguised form a foreign investor or foreign-invested enterprise to transfer its technology, the directly responsible person in charge and other responsible staff shall receive sanctions in accordance with law.

Chapter VI Supplementary Provisions

Article 44

A foreign-invested enterprise established before this Law takes effect under the Law of the People’s Republic of China on China-Foreign Equity Joint Ventures, the Law of the People’s Republic of China on Wholly Foreign-Owned Enterprises, or the Law of the People’s Republic of China on China-Foreign Contractual Joint Ventures may elect to transform its business form and organization structure, etc. according to the Corporation Law of the People’s Republic of China and the Law of the People’s Republic of China on Partnership Enterprises and file for registration of modification of its business form within five years since this Law takes effect; it may also maintain its original business form or organization structures.

Since January 2025, for those existing foreign-invested enterprises that have not transformed their business form or organization structure in accordance with law and have not filed for modification registration, the department in charge of market supervision and administration shall not accept their application for other registration matters, and shall publicize the relevant situation thereof.

Article 45

The specific rules on registration of modification of the business form or organization structure of the existing foreign-invested enterprises shall be made and announced by the department under the State Council in charge of market supervision and administration. The department under the State Council in charge of market supervision and administration shall reinforce its guidance on modification registration, and the departments of market supervision and administration in charge of modification registration shall,through various means of optimizing their service, facilitate the enterprises for their modification registration.

Article 46

After the existing foreign-invested enterprises have transformed their business form and organization structure, the conditions on transferring shares of stock or shares of equity and the means of distribution of income and the residual assets agreed upon by the original cooperative parties may continue to be effective.

Article 47

The relevant provisions provided in the Foreign Investment Law and this Regulations apply to the foreign-invested enterprises that re-invest within China.

Article 48

For the investors from the Hong Kong Special Administrative Region and the Macau Special Administrative Region investing in the mainland, the Foreign Investment Law and this Regulations shall be applied by reference;except that the law, administrative regulations, or the rules made by the State Council that provide otherwise shall be applied.

For the investors from Taiwan investing in the mainland, the Law of the People’s Republic of China on Protection of Investment Made by Taiwan Compatriots and its Implementation Regulations shall apply; for the matters not mentioned in the aforementioned Law or Regulations, the Foreign Investment Law and this Regulations shall be applied by reference.

For the Chinese citizens who have settled abroad investing within China, the Foreign Investment Law and this Regulations shall be applied by reference, except that the law, administrative regulations, or the rules made by the State Council that provide otherwise shall be applied.

Article 49

This Regulations takes effect since January 1, 2020. The Regulations on Implementing the Law of the People’s Republic of China on China-Foreign Equity Joint Ventures, the Provisional Regulations on the Term of China-Foreign Equity Joint Ventures, the Implementation Rules on the Law of the People’s Republic of China on China-Foreign Equity Joint Ventures, the Implementation Rules on the Law of the People’s Republic of China on Wholly Foreign-Owned Enterprises, and the Implementation Rules on the Law of the People’s Republic of China on China-Foreign Contractual Joint Ventures shall be repealed at the same time.

If there is any discrepancy between the rules concerning foreign investment made before January 1, 2020 and the Foreign Investment Law or this Regulations, the Foreign Investment Law and this Regulations shall prevail.

THE END
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Evolving Workplace Trends You Can’t Ignore

WISENET ASIA KNOWLEDGE CENTER

Everything changes, but some things stay the same in the workplace. The common denominator is the workforce and the traits they bring along.

To keep ahead of the game, and to attract and retain the best talents, the people-centred approach still rules the day despite technological advances.

Worldwide, millennials and post millennials – the Gen Z, are making up more than a third of the workforce and this figure continues to climb. They have shifted expectations and demands in the workplace. To include them meaningfully and productively, companies will need to be agile as they rethink the workplace to focus on what’s important to this expanding group of workers.

  1. PRIORITIZING THE WORKER EXPERIENCE

Traditional office norms and rigid structuring of work processes and hours are not going to cut it. At the first hint of a better-fit opening elsewhere, employees are going to head out with few misgivings.

Managers who shake their heads at the teflon quality of the ‘younger’ workforce today would do better to accept that priorities have changed since the boomer era.

Due to technology and because of greater accessibility and a world where we are affected by happenings globally, it has become harder to compartmentalize work and personal life.

Flexible work arrangements

As a result, the 9 – 5 bracket doesn’t always work anymore. Flexible work arrangements are welcome where it’s not the fixed linear hours put in that counts, but results that matter.

This is even more apparent with the gig economy where skilled workers are hired on a project basis and can work remotely – the freelancers, consultants, and other non-permanent workers.

Work-life balance

Work-life balance is prioritized as people become more health-conscious both physically and mentally and take conscious steps to avoid burnout. This is where people-centred perks like company subsidized gym memberships, breakout areas with snacks and entertainment, mental fitness care and regular company hangouts can bolster a sense of balance and satisfaction.

Face-to-face interaction at work

As contradictory as it sounds, millennial workers who grew up in a digital-centric world look forward to face-to-face interaction at work. This is where even though communications are often via the internet, meetings in real life are crucial, not just teleconferencing.

Positive engagement from higher-ups

Positive engagement from higher-ups is desired where workers feel cared for and where it is not necessarily only about work every time. Regular check-ins from their higher-ups make workers feel valued and trusted, more motivated and integrated into companies to produce better work and stay longer in the company. 

  1. SOFT SKILLS ARE THE NEW HARD SKILLS

Hard skills can be readily taught but soft skills take longer to learn. Positive attitudes, good organizational skills and the ability to connect with people are incredibly valuable skills sought by future-oriented companies. Keeping a sharp lookout during recruitment and doing appraisals for these strengths in candidates are crucial so you don’t miss out.

  1. LEVELLING OF CORPORATE HIERARCHIES

Climbing the corporate ladder vertically was the goal in the past. Not anymore, as workers take on multiple roles and expand their skillsets in the process following the lattice model, making them more marketable and in demand.

As career paths become more fluid, it is timely for companies to foster a more collaborative environment that allows for team-switching, redesigning of meaningful job descriptions as well as platforms to share ideas and provide candid feedback. Unless companies do so, it is almost certain that they will lose good talent sooner than later.

Companies need to stay open and alert to training and moving their workers within the company for them to stay invested in the company. 

  1. INCREASING CO-EXISTENCE OF ARTICIAL INTELLIGENCE AND WORKERS

Technology has brought along artificial intelligence which, among other things, takes over the mundane and repetitive tasks of human workers. Chatbots can respond with greater immediacy and accuracy, not just for the consumer, but also for workers when they need mentoring or assistance.

What this means is that workers are expected to be better equipped to take on more complex, varied and creative roles including social and emotional ones. This ties in to cross-training and horizontal collaboration within the company discussed earlier. Clearly, the human element is not going away! 

  1. COMPANIES TAKING A STAND ON SOCIAL ISSUES

Activism is a catchword these days and with ever-increasing information and awareness of the ripple effects of events on life, companies that take a stand on social issues will attract the right talents.

Workers will align better with a company that have a social mission in which they feel they can contribute meaningfully instead of merely making a living. With a strong sense of shared purpose – part of the bigger picture – they are more readily invested to give their best at work.

All said, the millennial generation which forms a large chunk of the workforce expects promotions and salary increases to happen sooner than later. HR managers will need to manage these expectations by striking a balance – inspiring steadfastness without courting cynicism!

 

 

—End—

https://www.efrontlearning.com/blog/2017/10/trends-2020-workplace.html

https://techwireasia.com/2019/07/the-future-of-work-is-here-and-needs-more-hands-on-leadership/

https://www.hrinasia.com/recruitment/top-5-workplace-trends-for-2018/

https://www.timeo-performance.com/recruitment/2019-hr-trends-for-apac-challenges-of-agility-and-managing-a-multi-generational-workforce/

https://millennialboss.com/2015/12/things-millennials-want-at-work/

https://dynamicsignal.com/2018/10/09/key-statistics-millennials-in-the-workplace/

https://bluemarblepayroll.com/top-5-asia-hr-trends-watch-2019/

https://www.hrinasia.com/retention/how-to-help-nurture-and-retain-your-employees/

https://blog.linksinternational.com/blog/top-5-asia-hr-trends-to-watch-in-2019

https://www.mercer.com/our-thinking/career/voice-on-talent/five-workplace-trends-shaping-the-future-of-work-which-are-most-important-to-you.html

https://danschawbel.com/blog/the-top-10-workplace-trends-for-2019/

https://www.shrm.org/hr-today/news/hr-news/pages/top-10-workplace-trends-for-2019.aspx

https://www.cnbc.com/2018/12/13/5-top-workplace-trends-to-watch-in-2019.html

 

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Handling Personal Attacks at Work

WISENET ASIA KNOWLEDGE CENTER

Work is hard enough whether it’s work you like or work that you have to do to get that paycheck at the end of the month. So, the last thing you want is to feel attacked at your workplace.

When your work is being evaluated and criticized legitimately, while it can feel burdensome, we find that we can roll with the punches.

Getting personal attacks that knock us on the other hand can set off a whole array of different emotions and reactions within us.

When a superior, a co-worker or even a client – make direct or indirect comments that puts us down, jabs at our personality, our appearance, our walk, our talk and our personal life and choices, it’s another ballgame.

It doesn’t even matter if what they say is true or not. The point is that it has no bearing on your work, it’s deliberately malicious and leaves you feeling queasy in the gut. You feel embarrassed, shamed, exposed, angry and hurt.

You want to counter-attack and defend yourself but you can’t because it’s not in your nature to be combative. Or maybe the attacker is your boss or client and any retaliatory moves on your part will jeopardize your position at work.

So, what do you do? Do you just suck it up and smile benignly or fume silently and hope that this too shall pass? What can you say or do that will get them to back off while maintaining your composure and self-respect?

Ask yourself, is it about me or about them?

Oftentimes, it’s really about the other person. Why else would anyone hit below the belt in the work context? Could you have said or done something, even inadvertently, that could have triggered them off?

We are all a hodgepodge of experiences and emotions. Because of this, even a chance remark by someone could trigger off prior or ongoing unresolved experiences and their accompanying emotions. In psychological terms, it’s called displacement, projection or any of the other defence mechanisms. To avoid confronting issues in our own lives, we project or attribute them to others. We displace our unacceptable feelings onto another safer target. For example, instead of lashing out at your demanding and unreasonable boss, you take it out on your subordinate.

It could also be that the personal attacker is feeling insecure and threatened by how good you are at your job, or how attractive you are, or how popular. It could be about their emotional needs and communication skills or lack of it and does not reflect you.

What if there is some truth to the personal attack?

Say for instance, the attacker calls you an undisciplined fat slob and extends that to your work, remarking that someone who can’t discipline her own food intake can’t possibly handle a high-value project with success.

What is true here is that you are overweight. The other remarks about you being undisciplined and unable to handle a high-value project successfully is not.

The attacker’s reasons for attacking you can be traced to any number of reasons: jealousy for not being assigned to the project, repressed anger about her own overweight child, angst in dealing with her own weight control, or being cheated on by her husband.

The point is, the attack does not define you. It’s about the attacker, not you.

Do I confront the attacker? Or not?

If you have sussed out why the attack was launched and it has more to do with the other person than you, it should leave you feeling calmer and in charge and this is important. Your self-regard is intact – not assailed.

In your own words, say something along the lines of, “I’m not quite sure where this is coming from, so help me understand why you’re saying this.”

Always come from a point of tentative curiosity; as a detective, not a defender. The attacker is then put on the spot to rationalize the attack – whether it’s an outright accusation, a sarcastic remark or an unkind rumour. When you do this, your credibility as a level-headed and reasonable person comes through for all to see.

Sometimes though, the personal attacks may be too trivial for you to pay heed to. Say, a senior manager rebuffs you by wanting to discuss only with your boss instead of you, an executive officer, because you’re not at his level even though you’re well able to do so. Or a co-worker tells the others that you’re stingy because you only spend less than $5 for lunch. If you’re offended in such instances, instead of confronting them, you may want to ask yourself why you feel that way. Some introspection and maybe a discussion with a close and honest friend could shed some light and help you in your personal development.

It all boils down to the whys of a situation and the person. Understanding this helps you reframe the situation and enables you to stay calm enough to deal with the attacks so that stepping into your workplace doesn’t put knots in your stomach and negatively affect your work performance and relationships.

—End—

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WiseNetAsia Seminar: HR Due Diligence for Mergers and Acquisitions in China 2019

Singapore (19 July 2019) –  WiseNet Asia recently held a seminar on ‘HR Due Diligence for Mergers and Acquisitions in China’ for HR professionals in Singapore.   The seminar aims to provide the audience with fundamental knowledge on strategic mergers and acquisitions planning in China.  The event was held in Singapore on 19 July.

Mr Wesley Hui, Director WiseNet Asia, giving the opening speech.

“The total amount of mergers and acquisitions in China reached its peak in 2018 with a total of  $56.1 billion; however, there are also a large number of high profile deals that never took off due to failed due diligence.  China is Singapore’s largest trading partner therefore there will be ongoing M&A activities for Singapore companies in China .” said Wesley Hui, Director of WiseNet Asia.

Mr Koh Chin Seng, speaker on Due Diligence in Mergers and Acquisitions in China

The seminar was presented by Mr Koh Chin Seng, a veteran with more than 30 years of HR experience.  Mr Koh has undertaken 7 HR Due Diligence projects in China and 6 in US/Europe. In 2012, he co-authored a book, entitled “HR Diligence for Mergers & Acquisition in China” and has also contributed 2 case studies to the book “Implementation of Changes in Chinese Organization”, edited by Professor Ruth Atlas.

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2nd China Headhunting Summit Successfully Held in Chongqing

 

The 2019 Second China Headhunting Industry Development Summit is successfully held on June 21st in Chongqing Human Resources Service Industrial Park.

On this occasion, our general manager Ms Karen Woong accepted an interview from Hualong.com.  According to Ms Woong, “Successfully hunting a senior talent is sometimes more like a psychological game.”  According to the “2019 Headhunting Industry Insight Report”, the headhunting process starts from the commissioning of the recruitment assignment whereby a recruitment project takes an average of 1-3 months to complete.  An average 45.67% of the headhunters complete a recruitment project within a period of about 3 months.  The people in the industry describe hunting talents as comparable to the pursuit of love.

Ms Karen Woong, General Manager, Chongqing WiseNet Asia Co., Ltd

From HR to headhunting for more than 10 years, Ms Karen Woong, General Manager of Chongqing WiseNet Asia Co., Ltd. bluntly said that it is a “marriage” for the company and talents.  Everything has variables. Once, to look for a sales director of an international company, the company picked an Italian from 10 recommended candidates, the two sides hit it off.  The candidate has three days to enter the job, but in the last minute said that he “does not want to jump”, which means that the year-long hunting plan has been abandoned. “My wife is pregnant, and there is no way for the company to take care of the family at this time.”  The candidate is apologetic.  In addition, the original company treated the welfare of the employees’ family members, which was obviously better than the new company.  Ms Karen Woong did not break the connection with the candidates. She recalled: “After a year, the job vacancy still exist, the client company once again proposed to recruit others. This time, the candidate who once rejected showed me his network, this single business was then successfully completed.”

An industry insider revealed that the high-end candidates are all “airborne soldiers”.  Whether they can control the team and survive in the enterprise, they also need the follow-up service of the headhunter.  “When the candidate failed to survive the three-month guarantee period, the headhunting company will only get 50% of the value of the order.” Previously, to help a packaging printing company in Singapore to find a professional and technical personnel, Ms Karen Woong turned to find the right person in India. When the other party flew from India to Singapore, a person came to the channel with his luggage. Ms Karen Woong decided to become his first local friend, this means one-to-one orientation including eating habits, cultural atmosphere, taking him to the supermarket, so that he can get used to the local life as soon as possible.  This year’s Spring Festival, the candidate’s phone call made Ms Karen Woong feel warm: “He said that when he returned to Singapore during the Spring Festival, he hoped to introduce his wife to me.”For many years, Ms Karen Woong often received something from the family members of the candidates such as greetings, hand-made desserts, etc.  The master of profound psychology, Ms Karen Woong feels that headhunting is a business that needs long term ‘efforts’, whereby you need to really think what is best for the job candidates and let them give you their heart. Headhunters often need to go out with candidates or customers to expand their network. They once recruited professional management talents for an international airport, whereby Ms Karen Woong flew directly to the Maldives.  This is a headhunting life exactly as shown in the TV series.

Extracted from Hualong.com – “Hunting in the Workplace” Chongqing WiseNet Asia.

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WiseNet Asia Recruiting Talents for Qatar Free Zones Authority

The perks of working as an expat in the richest country in the world include tax free income, access to an international network of contacts, and having a personal portfolio of global management experience.

Expats get their job market values boosted through having a stronger work portfolio.  At the same time, they benefit personally in terms of bigger take home pay, with most of their accommodation and day-to-day living expenses taken care of during their time working overseas.

Qatar, the Richest Country in the World

Qatar is the world’s richest country by Gross National Income per capita of US$128,060 in 2018.

The Middle East country is also the world’s second largest exporter of liquefied natural gas. It has invested more than US$350 billion in global companies and around US$100 billion in world-class transport infrastructure.

The 2018 Global Competitiveness Index ranked Qatar as 25th out of 138 countries, with top rankings in Institutions and Infrastructure.

For connectivity, Qatar has one of the highest internet penetrations in the region, offering a 5G network, high-speed broadband and multiple smart cities.  Its new airport has been recognized as the ‘Best in the Middle East’. The national carrier, Qatar Airways, was voted ‘Airline of the Year’ in 2017 and is one of the largest air-cargo operators in the world.

Qatar’s seaport has recorded the highest increase in liner shipping and still has significant available capacity to support further growth.   Qatar’s metro system is well underway and set for completion for 2020.

Business and Career Opportunities in Qatar Free Zones

The Qatar Free Zones aims to offer international companies and investors opportunities to establish operations in Qatar to serve the Middle East and Global Markets.

Some of Qatar Free Zones pro businesses policies include 100% ownership, a flexible foreign workforce and a 20-year tax of zero corporate tax, zero customs duty and, no personal income tax.  The Free Zone facilities include fully serviced plots, ready-built units and dedicated security.  Onsite amenities including hotels, retail and hospitals.

Qatar is gradually diversifying its economy beyond the oil and gas sectors with major initiatives under way, there are also growth plans for some national ‘champions’ such as Qatar Airways, Ooredoo, BeIN Sports and Qatar Petroleum.  The 2022 FIFA World Cup will be held in Qatar.

The Free Zones are managed by Qatar Free Zones Authority (QFZA), an independent entity founded in 2018 to support economic development and establish a cluster of world-class free zones in Qatar. It is responsible for setting the strategic direction and policy of the free zones, as well as securing anchor investments.  QFZA aims to stimulate the country’s economy through a vibrant and self-sustaining business ecosystem, based on transparency and the rule of law.

Other facilities supporting the Free Zones include nearby Hamad Port and Hamad Airport, which offer world-class infrastructure and handle 4 million tons of cargo annually, with additional capacity available.

Qatar Free Zones

Qatar Free Zone Ras Bufontas

Qatar Free Zone Um Alhoul

 

Key Benefits of Qatar Free Zones

Qatar Key Benefits

 

General Information about Working in Qatar

Remuneration:  An expat remuneration package will usually consist of a fix salary, variable payments such as profit sharing and end of contract bonuses.  There may be other employee benefits such as accommodation, car and children’s education.  To find out general information about salary and employment benefits in Qatar, please refer to https://www.onlineqatar.com/living/salaries-doha-qatar.aspx

Income tax:  There is no personal income tax in Qatar.

Work visa:  The employer/sponsor will organize a business visa first to get all formalities such as health check and documentation submitted before applying for the work visa.

Exit visa:  The sponsored individual (i.e. the working member of a family) is required to obtain an exit visa if he has been in the country for 30 days or more. This can be obtained by your sponsor. Families are exempted from this requirement.

Religion:  Strict Muslim state where foreigners are expected to observe Muslim restrictions.  Women are allowed to drive.

WiseNet Asia Recruiting Talents for Qatar Free Zones

WiseNet Asia is one of the appointed recruiters for senior management professionals in Qatar Free Zone.  With its regional coverage and experience in industrial parks including Chongqing Free Trade Zone, Tianjin Eco City and Maldives, WiseNet knows the intricate human resources needs in free zones development, and has the experience in placing the right talents.

To view available career opportunities in Qatar, click the link below and type ‘Qatar’ in the location box in the right:
http://wisenetasia.com/jobs/#s=1

 

 

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WiseNet Asia’s 8th Anniversary Message to Job Candidates, Clients & Business Associates

8th anniversary

As we celebrate our 8th Year Anniversary, here is a little message to our job candidates, clients and business associates:

Looking back:

8 years from a small head hunter firm to a regional HR consultancy; 
8 years of hard work, tenacity and team chemistry that make things happen;
8 years of relentless drive in placing and developing talents, and building partnerships with companies of the same purpose.


Our 8th year key milestones:

*     Going regional.  Started in 2011 and based in Singapore, WiseNet Asia has expanded to other locations in Shanghai, Chongqing, Hong Kong in China and Kuala Lumpur, Malaysia.

*    The HR firm with the highest number of employees’ retention.  The 3 longest employees have stayed with the company since day 1.  Turnover on average year-on-year is below 10%.

*    Pioneer HR firm in Belt & Road Initiative/Chongqing Connectivity Initiative (CCI).  WiseNet Asia has been actively involved in the Talent Development and Business Matching aspects of the Chongqing Connectivity Initiative since it’s inception in Nov 2015.  CCI is part of the greater Belt and Road Initiative which is estimated to be running close to 1 trillion in 3 regions.  In 2018, WiseNet (Chongqing) is accredited as one of the Talent Acquisition Service Provider for Chongqing Municipality from 2018-2019 under the HongYan (talent) policy.  Another award is the ‘Chongqing Municipality Talent Attraction Work Station’ by Chongqing Municipal Bureau of Human Resources and Social Security.

In 2011, Wesley Hui, founder of the company, said to his staff “I see myself as someone who is able to help people find real meaning and value by placing them in the right career path, at the same time, I help companies grow in many ways.  I don’t see this as a transactional service because it’s about the unquantifiable value that means a lot to everyone.” 

8 years later, in WiseNet Asia, it is still about delivering real meaning and value, in talent acquisition, talent development, HR outsourcing and in everything that we do.

We look forward to working with all of you for more successful talents placements, more talents development and more successful collaborations.

Cheers to a meaningful future together ahead,

From all of us at #wisenetasia

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Chongqing: A Growing Career Destination to Explore

Why you should consider career opportunities in Chongqing

 

Positioned at the confluence of Asia’s economic markets, Chongqing is the largest of China’s four municipalities. What’s more, it has seen a year-on-year double digit GDP of 11% reflecting its rapid growth and development.

A vibrant and unique city

Touted as the world’s fastest growing tourism city according to the World Travel & Tourism Council, Chongqing is the gateway to the stunning Three Gorges reservoir and home to alluring valleys.[1] Its location in the Sichuan region also makes it a great place to enjoy simmering hotpot dishes. Thrill-seekers can expect the American-owned Six Flags amusement park franchise to open an adrenaline-pumping space here in 2020.[2]

WeChat Image_201805240951225

The Chongqing region is identified as one of the focuses under China’s 13th Five-Year Plan (2016-2020) for socioeconomic development, with a mandate for greater urbanization and connectivity by strengthening its shipping centers in the Yangtze River, the longest river in Asia.

Chongqing is a key inland transportation hub for the Belt and Road Initiative which connects Western/Southeast Asia, Africa and Europe. The recent Belt & Road Chongqing Brand Expo 2018 drawing 20,000 visitors highlighted the city’s auspicious position as the intersection of the Silk Road Economic Belt, Indo-China Peninsula Economic Corridor and Yangtze River Economic Belt.

westernchinaairport

Transport options abound with Jiang-bei International Airport located in the heart of the city, over 150 trains passing through daily to connect major cities like Beijing and Shanghai, and 6 easily navigable subway lines linking Chongqing’s 9 districts, just to name a few. The huge investment in connectivity here has, in turn, attracted investment from other cities in China.[3]

Establishing a career in Asia’s largest smart city

Primed to be Asia’s largest smart city and also China’s pilot city to apply Big Data Intelligence by 2020, Chongqing hosted the Smart China Expo in 2018 which welcomed key personalities in business and tech such as Alibaba’s Jack Ma and Tencent’s Pony Ma.[4] Recently, Alibaba partnered with a local bank to develop financial service apps and Tencent announced its 1,000-strong workforce in the city, an increase from the previous figure of 400.[5] The presence of these MNCs here is testament to the growth potential of Chongqing—you certainly want to get on board this wave of progress!

 Incentives for talents

Career opportunities are impressive as the local government seeks to attract worldwide talents. The launch of the Hongyan Talent Plan in 2017 is a major factor: it offers monetary incentives based on industry classification, services around investment and financing, eligibility for resident visa and household status, medical services and more.

Hong Yan cover

Eligible talents (those who meet skillset requirements and sign an employment contract of a minimum of 3 years in Chongqing) can apply for the Chongqing Talent Service Card. This helps with household registration based on the available range of accommodation selections in expat-preferred areas, residential visa privileges, finding employment for spouse/children, schooling privileges and preferential medical arrangements. Entrepreneurs are also given support via tech initiatives, project financing, loan subsidies and more.

Those with children or looking to start a family can choose from a good variety of established international schools catering to ages from nursery to tertiary. Medical care is also just a ring away with most major serviced apartments having 24-hour call services with doctors on standby.

Achieving success

Adapting to life in Chongqing is easier than imagined with the availability of expat support networks and activities. These might include café meetups to get to know fellow expats in a relaxed setting, or even marathon races, seminars and conventions.[6]

Whether you’re a first-timer or a seasoned expat, keep an open mind and be willing to explore. Get rid of any preconceptions you may have and you might learn something new along the way!

In terms of business etiquette which can be delicate in Chinese tradition, here are some tips to follow:[7]

  • 关系 (guānxì) or strong relationships is particularly important in China—this may involve several meetups which could involve informal lunches/dinners to achieve your objectiveGuan Xi
  • If you are new, it helps to have an intermediary as most Chinese don’t conduct business with people they don’t know
  • Small talk is common and expected before meetings, instead of just getting to the point
  • Maintain composure and avoid strong displays of emotion, as losing and gaining ‘face’ is a key Chinese concept
  • Enter meeting rooms in order of seniority; the person entering first is usually the head
  • ‘Yes’ doesn’t always mean yes, and ‘no’ is only said in private

With practice and over time, these customs will naturally come to you.

With a plan dedicated to attracting world-class talents to this lively city brimming with opportunity, Chongqing is definitely a place you should consider for your next career move!

–End–

Sources:

[1] Source: https://edition.cnn.com/travel/article/chongqing-china-tourism/index.html

[2] Source: https://investors.sixflags.com/news-and-events/press-releases/2018/04-24-2018-213034885

[3] Source: https://www.internations.org/chongqing-expats/guide/working-in-chongqing-18651

[4] Source: http://en.people.cn/n3/2018/0830/c90000-9495761.html; https://www.prnewswire.com/news-releases/chongqing-to-host-smart-china-expo-boosting-development-of-big-data-technology-300699414.html

[5] Source: https://asia.nikkei.com/Business/Business-Trends/China-s-top-tech-flocks-to-inland-cities-to-develop-AI

[6] Source: http://www.cqexpat.com/

[7] Source: https://www.todaytranslations.com/doing-business-in-china; https://www.cnbc.com/2017/06/27/etiquette-tips-for-doing-business-in-china.html; https://cnbusinessforum.com/chinese-business-etiquette-101-business-china/

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