Britain in Hong Kong July-August 2023

C O N T E N T S

CHAIR'S MESSAGE

Dear Members,

At the Chamber, we have had an exceptionally busy time since the last issue of the magazine. Not only did we have the retirement of David Graham and the welcome back of Paul McComb, we continued to deliver events, meet visitors to town, and enjoy Coronation celebrations and visitors from the UK House of Lords, to name but a few of the activities. Continuing our theme of connectivity with the Mainland and Greater Bay Area (GBA) specifically, and reflecting on some of the key activities, it really feels like Hong Kong is bouncing back and “going in the right direction” Many people ask “Is Hong Kong back to normal”? Having been on a series of business trips to capital cities that also claim to be in the world city league, nowhere has “returned to normal” but rather it’s a “new normal” that we all experiencing. In a recent webinar hosted by the BritCham China, the panellists including me, discussed business sentiment both within the local as well as overseas markets.

One of the constants is our love of food and entertainment mixed with business, and thus we were delighted to accept the kind invitation from the Ministry of Foreign Affairs, to attend a barbeque lunch gathering along with other Chambers of Commerce and business partners, following the recent tour to the GBA This was a good chance to meet friends from other Chambers of Commerce and those who participated in the GBA tour, to share reflections and actions to be taken However, now it is the time for action and for converting business opportunities into projects.

Visitors to Hong Kong included the current and former Trade Minister for China, John Edwards and Richard Burn, respectively, and it was interesting to share reflections on business opportunities and

perceptions about trade arrangements between Hong Kong, China, the UK and other locations. As ever, the focus of the discussions was around the GBA. The GBA and its potential for growth is a constant topic of discussion, but it seems that outside of Greater China, its potential may not be fully recognised. This is one of the reasons the Chamber representatives are engaging in fireside chats (Jeremy Sheldon and Paul McSheaffrey on 5 July 2023, in London), and workshops (upcoming in London in September 2023) to provide more details of the pipeline of major projects, opportunities for green investments, and so much more We will be sharing details of the upcoming Hong Kong Week in London in due course

In May, we enjoyed two particularly engaging, yet different, fireside chats. Firstly, we had the pleasure of meeting Baroness Shriti Vadera, Chair of the Prudential plc and of the Royal Shakespeare Company. While the focus of discussion centred on business and the economic outlook, many were keen to exchange views in the form of rhyming couplets and quotes from Shakespeare. More seriously, we did learn about how the Royal

Shakespeare Company took actors who were unable to perform on stage during the recent pandemic, and had them engage with school children to interpret the plays and works of Shakespeare, to understand their relevance to the modern day, and of course, to express themselves. There is clearly a strong link between the creative industry and business, we mused about the lessons from The Merchant of Venice and other works. Moving to our next fireside chat, we did not indulge in literature but rather the wonders of the world of engineering, with Keith Howells, the President of the Institution of Civil Engineers (ICE), taking time to share his thoughts and direction for the delivery of infrastructure with cultural awareness in a climate of technical excellence, always with the UN Sustainable Development Goals (SDGs) as the core principles UN Goal 11 is my personal favourite as it relates to Cities – and in Shakespeares words “What is the city but the people?”.

Another visitor who was returning to the city where he worked in an earlier part of his career was Lord Dominic Johnson of Lainston, CBE, Minister of State in the UK Department for Business and Trade. We were pleased to hear stories from the past and also share prospects and directions for the future, especially in the context of how the business community perceives Hong Kong as an International Finance Centre (IFC) with a focus on green bonds and investments

Continuing with this theme, the Director General of the Department for Business and Trade in Hong Kong, Chris Woodward, hosted a meeting with the Consul General of the British Consulate General

Guangzhou, Matt Moody, where again the subject focused on understanding of the opportunities in the GBA.

In between all of these activities, we were delighted to don tiaras and terrific outfits and celebrate the Coronation of His Majesty King Charles III starting with the Women in Business event hosted at Fortnum and Mason’s fantastic venue in Tsim Sha Tsui, and thereafter at the British Consulate-General event hosted by the Consul General Brian Davidson CMG complete with live streaming of the Coronation

Just to give a heads up for the diary, we are looking forward to Hong Kong Week in London in late September, and will be sharing plans and activities as they unfold Also, planning is well underay for the annual British Chamber of Commerce Hong Kong Summit, which will be held on 26 October 2023, with the focus on “Hong Kong Rebound”.Between now and then, there will be many activities, opportunities to connect and engage, so keep tuned in and stay connected.

Last but absolutely not least, our new Executive Director is delighted to share some thoughts after a month in the role, and upon his return to Hong Kong. Read his message on the next page!

Ir Dr Anne Kerr Chair

The British Chamber of Commerce in Hong Kong

MESSAGE FROM PAUL MCCOMB

Dear members, colleagues and friends,

My last day as a British public servant, after more than three decades, was on the 26 May The following Monday, I was on CX238 and back to wonderful Hong Kong and my feet have not touched the ground since!

For those who don’t know me, I was the DirectorGeneral of Trade and Investment at the British Consulate-General based in Hong Kong from 20172021 I returned to the UK two years ago to support UK businesses adjust to the UK’s new trading relationship with the EU, and more latterly deal with the impact of the war in Ukraine.

Since arriving back in Hong Kong I have supported 26 events and met well over 100 members - as I said, my feet have not touched the ground! I have had a warm welcome from everyone: the Chair and General Committee; Sterling Members; Committee Chairs and members; the British Consulate; other Chambers; and government officials, including the China Liaison Office It has been great to reconnect with folks and meet many new faces

My thanks to David Graham and the wonderful Executive Team at the British Chamber for all the great work they have done over the last few, challenging years. My life has been made easier by the well-oiled machine that I have inherited: Jessie, Christy, Martine, Silvia, Karrie, Michelle, Angela, Eddie, Terrine, Claudia, Jessica and Catherine!

I have been asking everyone I meet: What are your priorities? Are you getting what you want from the Chamber? And have you got ideas for the future? XXXX

The feedback on the Chamber has been universally positive, and ideas have been constructive with a focus on making the Chamber even better I am still in listening mode and hope to crystallise my thoughts over the Summer and discuss with the Chair and General Committee – so more on that later

Meantime, it's head down, with a big focus on the Annual BritCham Summit in October and an important visit for the Chair and myself to Hong Kong Week in London this September, where we will be promoting rk of the Chamber.

Paul McComb Executive Director The British Chamber of Commerce in Hong Kong

CHAIR OF THE CHAMBER'S COMMITTEE

EDUCATION COMMITTEE

Marco Longmore is the CEO and Founder of Castle Rock Education He has come to Hong Kong following his leadership of the successful establishment and opening of Fettes College Guangzhou in 2020 and brings with him over 30 years of teaching and leadership experience Before joining Fettes College Guangzhou as Head of College, he had the privilege of working in the United Kingdom at four leading HMC Schools in Edinburgh and London, including The Edinburgh Academy where he had been Rector (Headmaster) of the school for nine years From the UK Marco moved on to become the Founding Head Master of Brighton College Dubai in the United Arab Emirates, successfully overseeing the development of this leading British school brand from pre-operation to full opening. Establishing the 4th branch of Brighton College globally. In establishing Castle Rock Education, Marco takes his wealth of experience to a new role as an international education consultant, providing bespoke support service to international brand partners in British styled holistic education. Supporting preoperational and school running needs, governance, and strategic planning, as well as staff recruitment and leadership coaching for schools in South East Asia and the Middle East.

SOCIAL SUSTAINABILITY COMMITTEE

Katherine Rumble is Director of Growth & Governance at Habitat for Humanity Hong Kong, a leading global housing NGO serving the Hong Kong community Katherine brings over 20 years of professional experience in finance, project management, community engagement, strategy and business development Her multi-sector career spans private banking, offshore wealth management, UK Government and international nonprofit Katherine is passionate about real estate, sustainable development and poverty alleviation She joined Habitat as a volunteer in 2017 and now provides visionary leadership across established and developing areas of revenue generation, partnerships, events, advocacy, marketing and communications, governance, risk and compliance, as well as deputizing for the CEO Her extensive experience in the private sector enables her to develop strategic partnerships with multi-national corporations, private family foundations and high net worth individuals to address housing issues in Hong Kong and fund international development projects, as well as work with bilateral donors to provide humanitarian aid in the Asia Pacific region

BRITCHAM'S STERLING MEMBERS

WELCOME OUR NEW MEMBERS

CLOSERCONNECTIONSMAGNIFY THEAPPEALOFTHEGBA

ByAnnaChu,ManagingDirector, HeadofInternationalSubsidiaryBanking,HongKong,HSBC

Opportunities in the Greater Bay Area are as diverse as the region itself. With travel restrictions lifted and integration accelerating once more, British businesses can benefit from deeper connectivity.

The full resumption of cross-border travel between mainland China, Hong Kong and Macau has brought renewed momentum to the Greater Bay Area (GBA)

Here in Hong Kong, the return to normal ended four consecutive quarters of negative growth, with GDP up 2 7% year on year in the first quarter of 2023 More than 625,000 mainland tourists visited Hong Kong during the golden week holiday at the start of May. Guangdong’s economy expanded 4.0% in the first quarter, while retail sales advanced 5.1% and fixed-asset investment rose 7.4%.

After three years of disruption, all of this is good news for British businesses with an eye on the GBA.

Whether using Hong Kong as a springboard to sell goods and services in China or taking advantage of the GBA’s advanced manufacturing capacity, British businesses can benefit from the closer integration of their operations – physically, financially and digitally.

Two-way traffic

The GBA plan envisages the closer integration of the two SARs and nine municipalities in neighbouring Guangdong province into one of the world’s most technologically advanced, economically connected and liveable mega-conurbations

Guangdong has been China’s manufacturing hub since the 1990s and – as a result – China’s most prosperous province for more than 30 years Over that period, each municipality in the GBA has developed its own unique strengths

Zhongshan, for example, is a manufacturing centre for furniture and home appliances, while Zhuhai is renowned for printing supplies and yacht building. Foshan is traditionally famous for fish and ceramics, and more recently for electronics and precision instruments. Further east, Huizhou is known for petrochemicals and womens’ footwear.

New opportunities are emerging as Guangdong moves up the value chain. The government is actively supporting the development of new economy sectors, including biomedicine, new energy and ultra-high definition video displays

Dongguan, the province’s third-largest city, now produces a quarter of the world’s smartphones Shenzhen is China’s undisputed innovation centre, home to more technology unicorns than any other GBA city, and Guangzhou, the provincial capital, is China’s largest e-commerce hub Jiangmen, an agricultural city, has expanded in automobile parts, and Zhaoqing, a low-cost manufacturing hub and the least affluent of the nine Guangdong cities in the GBA cluster, is eager to develop its higher-value manufacturing base, including products like electric vehicles and biopharmaceuticals

Investments in infrastructure – road and rail as well as digital – provide a strong foundation for businesses looking to use the GBA as a base for smart manufacturing. More industrial robots and automobiles are made in Guangdong than anywhere else in China.

Guangdong’s investments in digital transformation include an enviable 5G communications network. At the end of 2022, the province boasted more than 210,000 5G base stations, the most among all mainland Chinese provinces.

Digital access

These technological advances are also making the GBA a more attractive – and accessible – market for suppliers of high-quality products and services The GBA’s 86 million people enjoy considerably higher disposable incomes than the average in China, and Guangdong province accounts for 23% of all goods sold online in mainland China.

Cross-border e-commerce trade value in Guangdong reached RMB645 billion in 2022, having grown by more than 40 times since 2015.

This creates opportunities for British businesses involved in a broad range of sectors, including education, professional services, healthcare and consumer goods.

And it certainly helps that Chinese consumers have an affinity for British craftsmanship. Many leading British consumer brands now derive a large or leading share of their global revenues from China, with an outsized share of those sales coming from the GBA

As an international bank, we are excited about the emerging opportunities in financial services, including the liberalisation of market infrastructure in Hengqin and Qianhai announced earlier this year

An ideal launchpad

This two-way appeal – as a manufacturing hub as well as a consumer market – makes the GBA attractive for a wide range of British businesses.

The GBA is not just a place to make and sell things, however. This affluent southern region can also provide a base from which British firms can scale their businesses across the rest of China's post-pandemic economy.

The central government in Beijing has designated Guangzhou an “international consumption centre” which means that by making a splash in the city, international brands could drive awareness of their products and services throughout the rest of the country

The pandemic period has changed the way business is done in China. After three years of digitalisation, international companies need to adapt to expectations of faster payments and online sales. Businesses can also benefit from more efficient treasury operations, thanks to simplified cross-border transfers and real-time payment systems

Further measures announced in February will also deepen the financial connectivity between Hong Kong and Guangdong Among the most significant are steps to improve access to funding for start-ups and small businesses on either side of the boundary, as well as plans to improve linkages between the bond markets in Hong Kong and Shenzhen

China’s reopening is a welcome boost for all ambitious businesses with a presence in the GBA, but there are still challenges to overcome. Firms wishing to tap into that opportunity need to understand the differences in the legal and operating environment between Hong Kong, Macau and Guangdong. Standards and policies remain starkly different in many industries, as do local expectations around the way business is done. A financial institution with deep expertise in these areas and connections across the region can help companies navigate these nuances and capitalise on the opportunities ahead.

About The Hongkong and Shanghai Banking Corporation Limited

HSBC serves customers worldwide from offices in 62 countries and territories. With assets of US$2,990bn at 31 March 2023, HSBC is one of the world’s largest banking and financial services organisations.

Anna Chu Managing Director, Head of International Subsidiary Banking, Hong Kong, HSBC

The 14th National People's Congress and National Committee of the Chinese People's Political Consultative Conference (the Two Sessions) were held in Beijing in March 2023, which emphasised the importance of economic stability and growth in post epidemic era During the Two Sessions, China’s central government addressed the important strategic position of the Guangdong-Hong Kong-Macau Greater Bay Area (the GBA) in the country’s future roadmap.

The 2023 National Government Work Report discussed the development of the Hong Kong SAR and Macau SAR in the past five years in relation to the future development of the GBA, including but not limited to deepening the construction of the GBA, supporting the economic development, improving people's livelihoods, preventing the epidemics, and maintaining stability Chinese President Xi Jinping’s speech during the Two Sessions further pointed out the importance of supporting economic development in the Hong Kong and Macau and further integrate both regions into the overall development of the country

Backed by the central government, local governments within the GBA also emphasised the importance of connectivity and coordinated development of the GBA. The Guangdong Government Work Report called for the construction of the GBA and Shenzhen Pioneering Demonstration Area, as well as for further

development of the Hengqin, Qianhai, and Nansha economic zones To achieve these goals, local government introduced a variety of supportive policies (Table 1)

As outlined by these policies, every major city in the GBA will receive support to develop specific key industries. For example, the focus for Guangzhou is on developing advanced manufacturing, financing and strategic emerging industries. Zhuhai plans to focus on new energy storage, electronic engineering, and marine industries. Meanwhile, Zhongshan focuses on new energy, biotech and next-generation technologies. Different development priorities for the respective cities across the GBA can enhance the agglomeration effect among them, increase the connectivity between these cities, and promote the coordination among the GBA Building an interconnected ecosystem is one of the key prerequisites to achieve the collaborative development of the GBA super city cluster and take advantages of the synergistic effects

Government connectivity

Following the reopening of the Hong Kong-Chinese Mainland border and the relaxation of pandemic restrictions, governments of the GBA cities conducted multi-level meetings and visits At the same time,

enterprises and institutions in the nine major cities of GBA have been approaching Hong Kong to explore opportunities for cooperation and attract more investments from Hong Kong and the overseas. For example, the Department of Commerce of Guangdong Province led a delegation to Hong Kong to hold seminars on their investment and trade policies. At the same time, Hong Kong SAR government representatives also actively visited Chinese Mainland cities in the GBA. In February 2023, Vice Chairman of the National Committee of the Chinese People's Political Consultative Conference Liang Zhenying led a Hong Kong delegation to Nansha for a two-day study session covering many aspects, such as entrepreneurship, work, life, healthcare and logistics The Chief Executive of Hong Kong SAR, John Lee, also led a delegation to visit Guangzhou and Shenzhen focusing on high-quality development of the GBA and strengthening cooperation in key areas such as the talent flow and mobility, financial assistance to technology and innovative industries, and the development of the green economy. This strengthened intergovernmental cooperation will boost the connectivity among the GBA cities such as the free flow of capitals and talents.

Improving cross-border capital flows

Finance plays an important part in the GBA initiative. Hong Kong is one of the world’s leading financial centres and one of the most developed asset management and insurance markets globally It serves as a central hub for financing investment and trading activities within the GBA, to support both multinational corporations to further expand in the region, as well as help Chinese corporates establish their presence overseas

In addition, as Chinese companies continue to expand their global footprint, Hong Kong remains a key offshore hub for facilitating the internationalisation of the Renminbi (RMB). The city has already held large capital flows with mainland China. The Stock Connect schemes, Bond Connect and Mutual Fund Recognition have laid strong foundations to achieve further loosening of regulations, resulting in more RMB-denominated equity products and investment portfolios Besides, with the progress of a number of measures such as setting up the GBA insurance centre in Qianhan and the GBA international commercial bank in Nansha, the financial service

Qianhai Finance 30 Measures

Preferential individual income tax policies for talents Tax; Talent Hengqin

Shenzhen Further Supports Hong Kong and Macau Youth Employment and Entrepreneurship

Youth entrepreneurship Shenzhen

Practice Measures on Hong Kong and Macau professionals in Free Trade Area in Guangdong Experimental Area Guangzhou Nansha Area, Nansha New Area

Professional Nansha

Table 1: Examples of supportive policies

sectors within the region are increasingly connected. This year, China’s top regulators have unveiled more than two dozen measures (for example, the Hengqin and Qianhai Finance 30 Measures) to boost crossborder investment as they further opened up the Hengqin and Qianhai economic zones in the GBA The Hengqin and Qianhai Finance 30 Measures aim to improve financial risk monitoring, prevention and resolution systems to enable high-level interconnection with Hong Kong's financial markets by 2025 Leading by the success in the financial industry, Qianhai will continue to drive the development and collaboration within the GBA in the fields of capital interoperability, economy, enterprises, and industries, which eventually also help the manufacturing industry to achieve upgrading and transformation.

Connecting the talents

Talent is the "first resource" and the mainstay of production and construction As stated in the original "Outline Development Plan for the GBA", the purpose of the GBA is to construct a pioneering cooperation zone for talent from Guangdong, Hong Kong, and Macau, demonstrate a sound mechanism for crossborder talent flows, and to facilitate talent mobility across different regions, industries, and systems. Currently, many Hong Kong universities have established or are planning to establish higher education institutions jointly with Chinese Mainland local universities in different cities in the GBA, taking advantage of the internationalisation of Hong Kong’s higher education and providing more opportunities for the talents in Hong Kong to start their career in the GBA

Only by attracting and retaining talents and providing them with liveable and business-friendly environments can the GBA construction really unleash the great potentials of the talents to draw substantial competitiveness One such example is a new talent visa policy issued by the Chinese Mainland stating that Mainland citizens who visit Hong Kong and Macau for business, academic exchanges and other activities can apply for a 3-month or 1-year multiple-entry visa,

enabling quality talent to access these job markets. Another example is the Hong Kong-Shenzhen innovation and technology park at Lok Ma Chau Loop (the LMC Loop) which aims to develop high valueadded higher education, high-tech research and development and culture and creative industries The Hong Kong SAR government is considering relevant entry and exit facilitation measures for IT talents working in the LMC Loop

Additionally, local governments have also implemented a variety of policies, including tax incentives and subsidies, to attract talents and promote start-up enterprises. For example, Dongguan provides subsidies for Hong Kong and Macau talent to innovate and start businesses in the Binhaiwan New Area. The Hong Kong SAR government also issued the "Greater Bay Area Youth Employment Scheme" to encourage university graduates in Hong Kong to work in the GBA In addition, Hong Kong will continue to provide support and incubation services for Hong Kong talents working in the GBA through the "Youth Development Fund", helping them to meet their capital needs during the initial stages of their entrepreneurship

Promoting talent mobility and connection in the GBA is a continuous process From the initial pilot programs focusing on legalising and certifying crossborder professional qualifications, to the recent visa policies for talent exchange between Hong Kong, Macau, and the Chinese Mainland, various measures have been carried out to deepen the integration of talents among Guangdong, Hong Kong, and Macau.

A gateway between China and the world

Since the launch of China’s opening-up and reform programme 40 years ago, the GBA has grown to become one of the world’s leading exportmanufacturing regions Factories here contribute to 37 percent of China’s exports – enough to make the GBA region the world’s fourth largest exporter, with a well-established network of global transport and shipping infrastructure. Leveraging on the connectivity

among GBA cities and the accessibility of capital, goods, talents and information within the region, the GBA is undergoing industrial upgrades and is starting to play a leading role in China’s innovation and technology development For example, in recent years, many well-known enterprises in high-tech industries have set up their global or regional headquarters or affiliates in the GBA. In 2021, China Electronics Corporation relocated its headquarters to Shenzhen. In 2023, ExxonMobil Corporation started the construction of a R&D centre in Huizhou.

To realise the full potential of the GBA, the cities in the region must leverage their diverse range of competitive advantages to create significant business opportunities and drive economic growth Enterprises should draw on the strong base of advanced manufacturing, technology and innovation in the Chinese Mainland and take advantage of Hong Kong’s role as the “super connector” to explore more business opportunities in the GBA and globally

About KPMG China

KPMG China has offices located in 31 cities with over 15,000 partners and staff, in Beijing, Changchun, Changsha, Chengdu, Chongqing, Dalian, Dongguan, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Nantong, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Taiyuan, Tianjin, Wuhan, Wuxi, Xiamen, Xi’an, Zhengzhou, Hong Kong SAR and Macau SAR Working collaboratively across all these offices, KPMG China can deploy experienced professionals efficiently, wherever our client is located

KPMG is a global organisation of independent professional services firms providing Audit, Tax and Advisory services KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and provide professional services “KPMG” is used to refer to individual member firms within the KPMG organisation or to one or more member firms collectively

KPMG firms operate in 143 countries and territories with more than 265,000 partners and employees working in member firms around the world Each KPMG firm is a legally distinct and separate entity and describes itself as such Each KPMG member firm is responsible for its own obligations and liabilities

KPMG International Limited is a private English company limited by guarantee KPMG International Limited and its related entities do not provide services to clients

In 1992, KPMG became the first international accounting network to be granted a joint venture license in the Chinese Mainland KPMG was also the first among the Big Four in the Chinese Mainland to convert from a joint venture to a special general partnership, as of 1 August

2012 Additionally, the Hong Kong firm can trace its origins to 1945 This early commitment to this market, together with an unwavering focus on quality, has been the foundation for accumulated industry experience, and is reflected in KPMG’s appointment for multidisciplinary services (including audit, tax and advisory) by some of China’s most prestigious companies

Maggie Lee Audit Partner KPMG China

Wilson Pang Advisory Partner KPMG China

THEPROSANDCONSOFSTRONGTEAMLEADERSHIP

ByKennethLaw,ProfessorandChairmanoftheDepartmentofManagement, ChineseUniversityofHongKong(CUHK)BusinessSchool

New research finds that promoting strong team leadership, without additional measures to boost company-wide collaboration, could be counter-productive

The secrets of great leadership are an abiding preoccupation of the business world. Inspiring leaders can spur us to our greatest achievements and, if your career has prospered under a talented line manager, you will probably be grateful to them for years to come

However, a new study by Kenneth Law, Professor and Chairman of the Department of Management at the Chinese University of Hong Kong (CUHK) Business School, suggests the prevailing belief that promoting strong team leadership is the key to boosting employees’ performance – and hence increasing company returns – may need to be reconsidered.

Entitled Integrating the Bright and Dark Sides of Leadership: An Investigation of the Intragroup and Intergroup Effects of Leader Group Prototypicality, the study was conducted by Prof. Law, in collaboration with Prof. Yongyi Liang and Prof Ming Yan of Jinan University, Dr Haibo Wang of Guangdong University of Foreign Studies and Prof Yuanyi Chen of Hong Kong Baptist University They noted that while much prior research has focused on the positive effect of such leaders within teams, little attention has been paid to their potentially negative impact on group interactions across a company

“To the best of our knowledge, studies on the coexistence of both the pros and cons of leader group prototypicality and their effects on group outcomes are scant,” says Prof. Law. “However, if the negative consequences of leader group prototypicality are inevitable, organisations should be careful when promoting the prototypicality of group leaders ”

Prototypical Leaders Gain More Trust within Team

The study draws on the established paradigm of social identity theory in leadership research This posits that teams led by line managers who are more prototypical of the group achieve higher performance levels because members are more attracted to the leader and place greater trust in them. As a result, leader group prototypicality has a positive effect within the team.

However, the researchers propose that leader group prototypicality may simultaneously have the negative effect of decreasing team members’ engagement with other teams in the company – known as intergroup citizenship behaviour – through the mediating factors of “group identification” and “relative leader power”. “We argue that relative leader power enhances the effects of leader group prototypicality on intragroup and intergroup outcomes through members’ social identification that ‘our group is superior to other groups’,” says Prof Law

The researchers devised a model to investigate the interactions between leadership group prototypicality; group identification; and relative leader power; and their effects on employees’ behaviour both within teams and between teams

The model was tested through a two-part survey of employees at five electrical appliance and textile companies in China’s Guangdong Province A total of 527 team members and 126 team leaders in the firms’ customer service and sales departments were sent two questionnaires one month apart, with a response rate of 70% for team members and 81% for team leaders.

In the first survey, team members were asked for their personal details and perceptions of their boss, while team leaders were asked for personal details plus perceptions of their relative power within the company. In the second survey, team members were asked to evaluate their group, while team leaders were asked to evaluate the team’s overall performance and how well it collaborated with other teams in the company.

Respondents were asked to rate their views on a scale of 1-5 or 1-7 to statements such as “My group leader represents what is characteristic about my work group” for team members; and “Relative to other group leaders within the company, I think I have a lot of control” for team leaders

Intragroup Effects VS. Intergroup Effects

Statistical analysis confirmed the study’s hypotheses, showing that leader group prototypicality had a positive relationship with the group identification of team members, while the latter was positively associated with intragroup performance and negatively associated with intergroup citizenship behaviour. Meanwhile, relative leader power was shown to amplify both the positive effect of group identification on a team’s performance and the negative effect of group identification on intergroup citizenship behaviour.

The researchers concluded that leader group prototypicality can lead to detrimental intergroup behavioural reactions on the part of team members, as well as favourable intragroup outcomes such as better team performance. “If a higher level of leader group prototypicality has negative influences on intergroup relations, leader group prototypicality needs to be carefully managed,” says Prof Law

The study advances empirical knowledge of social identity theory in the context of business leadership through its novel focus on team members’ identification with their team or group, rather than their individual perceptions of the team leader, and on group performance

However, the researchers stress that the crucial take-away for business leaders is the detrimental influence that relatively powerful prototypical team leaders can have on the collaboration between teams in a company - and hence on the firm’s overall performance.

Adapt Different Approaches to Different Situations

“We draw the attention of practitioners to the trade-off between the positive in-group effects and negative outgroup effects of leader group prototypicality,” says Prof Law “Team leaders need to compensate for the negative out-group effects in their day-to-day management of the team, by presenting intergroup relations in a positive light and encouraging collaboration.”

The study also points to key lessons at the organisational level for senior management. Positive intergroup relationships are crucial to the success of modern companies, because firms rely on collaboration between departments and teams to develop products and processes.

“Organisations should be scrupulous in the way they empower specific teams in order to minimise the negative effects of leader group prototypicality on cooperation between teams,” says Prof. Law. “One solution is to adopt a flat organisational structure ”

Teams that work within a flat structure have equal responsibility and power to access the human, capital and informational resources within the organisation that are needed for collaboration towards its objectives, he explains.

“By emphasising the functional complementarity of teams within an organisation, a flat and collaborative structure accentuates the way that they excel in diverse areas rather than comparing them by the same criterion,” Prof. Law says.

“However, where one team works exclusively on a particular task, its high status may be emphasised – without detrimental effects – to help the team leader motivate team members to improve their performance further Our framework can help managers to adapt their approach to a variety of group work situations ”

About China Business Knowledge, CUHK Business School

China Business Knowledge is the knowledge platform of CUHK Business School, providing top-notch research and insights to the academic, business and student communities, as well as the general public Through articles based on research from China and the rest of the world, it offers in-depth knowledge and practical tips about doing business in the real world More info: https://cbk bschool cuhk edu hk/

Kenneth S. Law Professor and the Chairman in Department of Management, The Chinese University Hong Kong (CUHK) Business School

“Change is the only constant” (Heraclitus):

Few areas of the global economy bear out this ancient wisdom like the retail sector in 2023. After two decades of digitisation, capped by the seismic supply chain shocks of the Covid-19 pandemic, retailers have become veterans of disruption to the way they do business Ongoing economic uncertainties and the accelerating pace of technological innovation and uptake mean there is every reason to expect the disruptions to continue across consumer product categories, from grocery to specialty goods

For retailers worldwide, the key imperative is to engage consumers everywhere they want to shop, while delivering the higher levels of value and service they now demand In China, additional disruptive factors make the race even hotter and more complex Businesses are under intense competitive pressure to master the Omnichannel model of selling, advanced by China’s e-commerce giants and now progressing to a level of sophistication not seen elsewhere The rewards for business transformation are great, but the hurdles are high. A data-driven, tech-assisted approach is helping the most agile businesses navigate changing times.

Disruptive demographics: China’s “no-size-fits-all” consumer mix

Marketers know that no region’s shopping population is a homogeneous whole, but monolithic notions of “the average consumer” are particularly inadequate in China Rapid demographic changes are creating cohorts with sharply differentiated tastes and values While the ageing population is much discussed as a societal phenomenon, the retail sector is only beginning to grapple with the implications for sales and marketing strategy

The over-60s are China’s fastest growing generational group, and the wave of baby boomers retiring in the 2020s is creating a silver economy that retailers ignore at their peril. These “New Seniors” are digitally enabled, but less novelty-hungry than their children and grandchildren. At the same time, brands used to courting the youth market need to continue to do so: Gen Z (born 1996-2010) has been dubbed “the moonlight clan”, in reference to its tendency to spend its monthly salary in a single lunar cycle. That kind of

spending power cannot be ignored, and China’s first generation of digital natives expects constant novelty and inspirational brand engagement.

Weighing “edgy” brand identity against customer lifetime value, and continuing to appeal to shoppers as they age, is a necessary calculus for retailers striving to gain market share. Fashion finds itself in a particular dilemma: women in their 60s and 70s have more disposable income than ever before, but collections still cater to youth. Algorithms determining homepage content priorities contribute to the problem: an older visitor who is shown a brand’s most sensational designs may be deterred before they reach items intended to appeal to them

A demographic problem may have an algorithmic solution: smarter segmentation One example is Jingdong’s JD com app has a dedicated interface for seniors, serving up relevant product categories The first marketing priority for brands must be to build a granular picture of their target audience Technology is a key enabler, with the ability to customise content, but retailers also need to align their other channels as well

Disruptive digitisation and the Omnichannel shift

While demographic complexity is driving the “what, and to whom” of retail strategy towards greater segmentation, the “how” is now defined by the opposite goal: seamless integration. For the past decade, China’s leading e-commerce platforms have led the retail sector in a race to sell to everyone, everywhere, all at once. The high penetration rate of smartphones and uptake of mobile payment systems have seen ecommerce sales grow rapidly year on year, further accelerating during the Covid-19 pandemic The rise of social commerce has contributed to an explosion in the number of customer “touchpoints”, and retailers need an end-to-end digital strategy that extends from self-owned platforms to WeChat to Douyin (TikTok) [stophere]

And the Omnichannel battleground is much bigger than digital dominance. Alibaba defined the new rules of consumer engagement with its “New Retail” unveiling in 2016, and rival Jingdong (JD.com) countered with “Unbounded Retail” two years later. In simplest terms, China’s largest e-commerce platforms planned to leverage their logistics prowess to expand online-to-offline (O2O), with brick-and-mortar stores. But their vision now extends beyond a footprint in physical retail, to complete ecosystems that encompass all related business functions, from sellers to manufacturers. JD.com once billed itself as “China’s leading technology-driven ecommerce company”; tellingly, the description was updated in 2021 to: “a leading supply chain-based technology and service provider.”

Entering an Omnichannel landscape dominated by tech-backed players is daunting for many traditional retailers AlixPartners’ annual Disruption Index (ADI) canvasses business leaders on the levels of upheaval their companies are facing; in 2023, 86% of retail executives reported that their business model needed to change within the next year – thirteen points higher than the average across other industries Strategic prioritisation is essential for firms without the benefit of an e-commerce giant’s economies of scale

Physical retail has proven to be a powerful catalyst for online sales, with the leading e-tailers concentrating their O2O efforts in the grocery market. Alibaba’s Freshippo/Hema Xiansheng brand opened its first store in Shanghai in 2016, has since grown to 350 outlets nationwide, and aims to operate in 200 Chinese cities of one million-plus inhabitants by 2030. For Freshippo and its JD.com counterpart, SEVEN FRESH, the mission is more sophisticated than simple O2O conversion, or prompting online customers to buy offline. The in-store experience is a journey of ultra-convenience, discovery and engagement.

Freshippo’s stated target customer is aged 25-35: young adults with their grocery-buying lives ahead of them, and an appetite for new products and shopping modalities. Digital advances many customers are now accustomed to - scanning QR codes in the aisles for product information, or paying via Alibaba’s Alipay app –are ceding the spotlight to new-tech flourishes An augmented reality app feature leads Freshippo customers on gamified adventures through the store to discover new product lines, while cross-promoting the latest studio blockbuster

Physical outlets not only help to engage online customers - they make it cheaper to serve them The operational advantages are simple: offline stores double as fulfilment centres Freshippo’s flagship service is 30-minute delivery within a 3km radius, enabled by store staff who are part-time stock pickers, and the cost efficiencies created by integrating online and offline warehousing and distribution under one roof

Competing in an Omnichannel 2.0 world

The Omnichannel transition is still a work in progress for many businesses. Building out front-end digital capacity has been the squeaky wheel, demanding attention in order to engage and retain customers. Online channels, self-owned platforms, omnichannel loyalty schemes and digital marketing are now the norm, and a second phase of Omnichannel transformation is in progress For businesses transitioning from legacy systems, the secret to competitive advantage lies in tackling integration issues, increasing back-end operational efficiency and smart use of big data to improve decision-making

There are major gains to be made in the following areas:

Diving into the data lake: Data analytics have never been more sophisticated or more critical. The proliferation of customer touchpoints gives retailers access to unprecedented real-time consumption data: it’s now possible to map the customer journey from online browsing to physical pathway through a store, to purchase online or off. The retailer that understands consumer behaviour can refine online/offline store experience and layout, predict demand, streamline inventory and determine pricing, promotions and new product development.

Understanding the value of Omnichannel capabilities: AlixPartners’ Omnichannel Simulator helps clients project what specific channels would mean for their bottom line Every business’s priorities are unique, and the best online-to-offline pathway might be more like a revolving door: for example, luxury brands, whose physical business in China has stayed notably resilient, are now exploring new digital channels in line with consumer expectations of a shopping journey that begins, and sometimes ends, online Physical boutiques are reimagined as immersive experiences or innovation labs which build customers’ emotional connection with the brand The old model of closely-guarded online sales is loosening, with leading brands opening up to thirdparty platforms Bulgari, Givenchy, Louis Vuitton and Berluti have all formed partnerships with JD com Nevertheless, luxury’s new O2O agility may not be indicative of a sector-wide shift The 2023 ADI survey found that 84% of offline retailers do not understand the true economic value of an online store. In-depth bespoke analysis is needed to understand Omnichannel’s potential.

Transparency from farm to shelf: E-commerce firms have led the way in deploying blockchain technology as a customer engagement tool. QR codes on some fresh produce do not simply link to a product page in the app, but provide details about grower, origins and transport: complete information to interest and reassure increasingly quality-conscious shoppers.

Thriving amidst retail new normal

Facing transformative opportunities and stiff competition, it is unsurprising that retailers report both optimism and anxiety In a recent AlixPartners Consumer Products Survey, two thirds of executives said they were confident that their business transformation plans would be executed properly – but 71% of interviewees for the 2023 Disruption Index admitted to concerns that their business models were not adapting fast enough.

With Chinese consumers showing not just a growing appetite for consumption, but a differentiated one, the first priority for any retailer considering its Omnichannel future must be to evaluate its current Omnichannel effectiveness. The second is to identify strategic capabilities, investing in areas that offer major gains. The third is to apply an equally strategic approach to application of emerging technologies. The Consumer Products Survey found that 60% of firms plan to prioritise investment in Artificial Intelligence and the Internet of Things. The best choices for ROI may not be those next-gen technologies that attract most media attention and hype

The rewards are clear: Omnichannel customers spend an average 30% more annually than single-channel consumers To thrive in retail’s turbulent new normal, the most resilient businesses will drive changes that are right for them, rather than allow themselves to be buffeted by disruptions - which are here to stay

About AlixPartners

AlixPartners is a results-driven global consulting firm that specializes in helping businesses successfully address their most complex and critical challenges. Our clients include companies, corporate boards, law firms, investment banks, private equity firms, and others. Founded in 1981, AlixPartners is headquartered in New York and has offices in more than 25 cities around the world. For more information, visit www.alixpartners.com.

Russell Partner AlixPartners

Britton

SUSTAINABILITY CHAMPIONS

INTERVIEW SERIES:

BREAKING THE VICIOUS CYCLE OF GREENWASHING, BUILDING MUCH-NEEDED TRUST IN ESG INVESTMENTS

My next guest in the Sustainability Champions interview series needs no introduction.

opportunities disclosures by listed firms, including but not limited to disclosure of:

Sacha Sadan, the UK Financial Conduct Authority’s (FCA) first-ever Director for Environment, Social, Governance (ESG), facilitates the embedding of ESG across a wide spectrum of regulatory activities, and promotes the UK as a global financial leader in ESG.

Earlier this year, the FCA also welcomed its new Chair, Ashley Alder, whom Britain in Hong Kong magazine readers should be all too familiar with, successfully led the Hong Kong Securities and Futures Commission (SFC) for the past decade.

Hong Kong itself is taking steps to promote itself as a global financial leader in ESG, with Alder’s successor at the SFC, Julia Leung, who is a vice chair of IOSCO sustainability task force with Sacha. SFC recently announced (14 April, 2023) that “Hong Kong’s early adoption of climate-related corporate reporting requirements will consolidate its position as a leading green and sustainable finance hub within the region and globally,” in response to Hong Kong Exchanges and Clearing’s (HKEX) proposal to introduce more rigorous climate and sustainability risks and

Risks and opportunities identification: Climaterelated risks (both physical risk and transition risk[1]) and opportunities and their impact on the business model, operations, and strategy,

Scenario analysis: Climate resilience of the business model, operations, and strategy to climate change through climate-related scenario analysis,

Transition planning: Climate change mitigation and adaptation efforts, and climate-related targets set,

Financial impact analysis: Quantitative disclosures of the current (material) financial impact, and a qualitative description of the future financial impact from climate-related risks and opportunities on a listed company’s balance sheet,

Transition risks according to Prof. Lee relate to financial and non-financial risks to a company’s assets (physical and financial) and liabilities, business model and strategy as a result of changes in consumer and investor preferences, regulatory policy, societal expectations, and technological advancements in the transition towards a low carbon economy The degree of transition risk exposure to a company depends on the nature, pace, and timing of the changes

When? The new rules will apply to ESG reports to be published in 2025, for financial years commencing on or after 1 January 2024. All in all, requiring significant time and effort from listed companies and companies pursuing a listing, who may not necessarily have the required people (expertise), processes (frameworks and governance), and technology (technology and data) in-house

Adopting clear sustainable investment product labels and technology to fight greenwashing

Greenwashing is making exaggerated, misleading or unsubstantiated sustainability-related claims that do not stand up to closer scrutiny. This can be perceived as a form of mis-selling, which may be deliberate or inadvertent.

Question 1: Sacha, what is the FCA as a responsible regulator doing to build trust in ESG investments and protect UK investors from greenwashing?

While it is excellent that financial institutions and listed companies are starting to think about ESG investment t iti it b f i f i t h

We need to tackle greenwashing and rebuild consumers’ trust. That is why consumers are at the heart of our Sustainability Disclosure Requirements (SDR) and investment labels proposals. Our proposals set out a package of measures designed to improve transparency, build confidence, and help consumers make more informed decisions These include:

A general anti-greenwashing rule applying to all regulated firms, to clarify that sustainability-related claims must be clear, fair and not misleading and must be consistent with the sustainability profile of a product or service.

Naming and marketing rules proposing requirements on the use of sustainability-related terms in the naming and marketing of products that do not use a sustainable investment label Sustainable investment labels to distinguish between three different types of sustainable product according to how they aim to invest:

Sustainable focus: investing in assets already regarded as environmentally and/ or socially sustainable

Sustainable improvers: investing to improve the environmental and/ or social sustainability of assets over time

Sustainable impact: investing to achieve iti bl l ld i t

Question 2: The FCA as an innovative regulator introduced the concept of the regulatory sandbox. How does the FCA leverage innovation and technology to fight greenwashing?

We’ve set out an ambition to be a more innovative and adaptive regulator We are committed to supporting creative platforms to bring people together to help address sustainable finance issues collectively And we have a unique convening power as a regulator to shape the direction of innovation for market-wide issues such as greenwashing.

A very topical example is the Greenwashing TechSprint that the FCA is leading as part of the Global Financial Innovation Network (GFIN), and which is being hosted on the FCA’s Digital Sandbox This is our first international TechSprint, following on from our Sustainability Techsprint in 2021 It will bring together 13 international regulators - with representation from Dubai, Malta and Singaporealongside firms and innovators. They will have the objective of developing a tool or solution that could help more effectively tackle the risks of greenwashing in financial services The TechSprint launched at the start of June and runs for 3 months, ending with a showcase day in September 2023 I’m deeply involved and excited to see the results

Build confidence in ESG ratings providers through regulatory oversight

With projections that USD 33.9 trillion of global assets under management (AuM) will consider ESG factors within three years, financial services firms are becoming increasingly reliant on third party ESG data and ratings services

Question 3: How do we support greater transparency and trust in the market for ESG data and ratings services?

ESG data and ratings providers are an important part of the sustainable investment world with significant influence For some time, we have said that there is a clear rationale for a globally consistent regulatory approach for certain ESG data and ratings providers and we have welcomed the launch of the Government’s consultation in March on whether and how to bring ESG ratings providers into the FCA’s regulatory perimeter Should the Government decide to give us the power to regulate, it would take time to get this in place, so we continue to push for improved standards in the interim Last November, we announced the formation of an industry group to develop a voluntary Code of Conduct for ESG data and ratings providers. We expect the Code to raise standards in advance of any potential regulation and the Code could also potentially continue to apply for providers that fall outside the scope of potential future regulation

It would be a missed opportunity to create a standalone UK gold standard, and not a globally aligned standard. As such, the Code will seek to be internationally consistent, by taking into account recommendations from the International Organization of Securities Commission (IOSCO) which focus broadly on 1) transparency, 2) good governance, 3) sound management of conflicts of interest, and 4) robust systems and controls The Code will also consider regulatory developments in other jurisdictions such as Japan, where the Financial Services Agency (FSA) has already finalised their excellent Code of Conduct.

In terms of users of third-party ESG data and ratings services, we expect firms to carry out appropriate due diligence when using this information and data This expectation is included in our letter sent to the chairs of authorised fund managers in July 2021, which sets out our guiding principles to help ensure ESG-related claims are clear and not misleading.

Chief Sustainability Officers’ role and Diversity, Equity & Inclusion

The FCA’s disclosure requirements for listed companies to disclose against targets set on gender and ethnicity on a “comply or explain” basis.

A Board comprising at least 40% women

A woman holding at least one of the senior Board positions (Chair, CEO, CFO, senior independent director),

A Board member from a minority background.

Question 4: An often-heard argument against mandating Board diversity is the lack of diverse talent pool to fill Board positions. Does that argument hold true to you?

13 years ago, in my last role as Director of investment stewardship at Legal & General, we were one of the first asset managers in the world to vote against allmale Boards Yes, there was pushback at the time based on arguments such as a lack of a diverse talent pool But reality has invalidated that argument Looking at the FTSE 100, over 40% of positions on Boards are now held by women, compared with 13% 10 years ago. And it was great to see that the wider FTSE 350 reached its 40% target for women on Boards 3 years ahead of target earlier this year – something that is definitely worthy of celebration Our multi firm review called out the importance of developing a talent pipeline Firms need to realise the importance of healthy, inclusive cultures in creating and retaining their own diverse talent pool. But as an industry, we

are still not where we need to be in ensuring financial services is both diverse and inclusive There are no Black Chairs, CEOs or CFOs in FTSE 100 companies

It is worth noting that whilst representation of women on Boards has improved, they are largely in nonexecutive roles rather than executive roles, so we need to continue the momentum. We are trying to address this with the requirement to explain if no women hold at least one senior Board position, for example

Question 5: How can Boards ensure they have sufficient ESG expertise?

ESG needs to be embedded across the whole organization A firm’s governance, purpose and culture are central to how it embeds environmental and social considerations into its decisions This is normal business in the 21st century Firms need to have the right people with the right experiences to provide appropriate challenge and advice. That doesn’t mean there needs to be an ESG specialist on every Board, you can get creative. We have set up an ESG Advisory Committee to the FCA Board, which provides guidance on emerging issues and helps us think about how we can develop our ESG strategy in keeping with our regulatory principles

Sacha, thanks for taking time for the interview and I look forward to catching up with you when you are in Hong Kong next.

B2B marketing in China presents significant challenges for international firms, primarily due to the distinctive digital landscape prevalent in the country With a population exceeding 1 4 billion and a highly engaged online community, China offers abundant opportunities for businesses to tap into the lucrative B2B market However, successfully navigating this market requires a profound understanding of the local culture, consumer behaviour, and the diverse range of social media platforms and tools.

Language and cultural barriers are prominent obstacles that international companies must overcome to establish a firm foothold in the Chinese market. Effective communication and localisation strategies are paramount for connecting with Chinese businesses and building trust. Furthermore, the digital landscape in China differs significantly from that of Western countries. Popular platforms like Facebook, Twitter, and YouTube are inaccessible due to government restrictions. Instead, Chinese consumers rely on a wide array of domestic social media platforms and messaging apps. As of 2022 Q4, WeChat reached over 1.3 billion monthly active users, stands out as a pivotal platform for B2B marketing in China It offers a range of features, including official accounts, mini-programs, and targeted advertising options, enabling businesses to effectively engage their target audience

To overcome these challenges and capitalise on the vast potential of the Chinese B2B market, international firms must adopt a multi-channel marketing approach that integrates online and offline strategies Online channels provide broad reach and cost-effectiveness, while offline channels offer opportunities for invaluable face-to-face interactions and relationship building, elements highly valued within the Chinese business culture Additionally, the COVID-19 pandemic has further accelerated changes in the marketing landscape, complicating B2B marketing efforts. The rapid shift towards digital channels and online interactions necessitates an adaptation in marketing strategies. Traditional physical trade shows and conferences, once the norm for B2B marketing, have been replaced by virtual events and webinars. This shift compels businesses to adopt a digital-first approach, leveraging online platforms to engage their target audience effectively.

Now that we have explored the challenges and the evolving marketing landscape, let us delve into the essential B2B marketing channels that corporates can leverage to effectively navigate this unique digital

terrain. These channels seamlessly integrate online and offline strategies, empowering businesses to reach their target audience and foster robust business growth within China.

Four essential B2B marketing channels in China

1. Social media: WeChat

WeChat is the most prominent Chinese social network in China Setting up a WeChat Official Account allows you to establish a digital storefront that opens to over 90% of China’s population Packed with diverse content marketing features, WeChat is where B2B businesses post thought leadership articles, corporate news, videos, and live-stream webinars to nurture and convert leads WeChat Mini Programs and H5 pages also come in handy with custom functionalities to further promote professional services and facilitate lead generation. For many B2B businesses, WeChat plays an integral part in their B2B marketing strategies, which need a dedicated team with local knowledge to keep up and operate.

2. Search engines: Baidu, Qihoo 360, and Sogou

Search engine marketing is a different story in China. With Google stepping out of the China market, Baidu, 360 Search, and Sogou have become the top go-to search engines for Chinese internet users to search for information and products From enhanced search experience, digital advertising options to analytics tools, these dominant players offer a package of innovative advantages for B2B businesses to effectively optimise SEM performance, increase traffic, and generate quality leads

3. Webinars and in-person events

Presentations and social networking in events are still vital for B2B businesses to meet clients as industry leaders. In the post-Covid period, webinars become a phenomenal B2B marketing tool in China, enabling B2B firms to tout their valuable insights and interact with a larger audience beyond the limit of location. Webinar sessions can also be recorded for on-demand content for further engagement and lead generation.

Meanwhile, in-person events are still important to offer the human interaction that webinars cannot beat. In the digital-first world, businesses can incorporate digital transformation into these physical events. One actionable example is that businesses can boost the subscription of their WeChat Official Accounts by showing a trackable QR Code at their booth or on sales representatives’ name cards While trackable QR codes allow businesses to measure the traffic of events, businesses can engage these leads by posting company updates on WeChat

4. KOL and vertical media marketing

KOL marketing works effectively for B2C marketing in China, but B2B influencers also have their charm. Despite the efforts many B2B businesses make to become thought leaders among their peers, many professionals look up to renowned subject matter experts for their in-depth and “unbiased” insights into market trends. Chinese vertical media also attract industry professionals to keep abreast of market trends, updates, and events. KOL and vertical media engagement effectively reach a highly relevant target audience and promote your professional services and industry events. [stophere]

Amidst the unique digital landscape in China, international firms often seek answers to common questions when consulting experts for B2B digital marketing strategies. These inquiries reflect the essentialness of gaining insights and acquiring guidance to develop effective approaches for the unique Chinese marketing landscape. Now, let's address some of the top questions that international firms commonly ask when it comes to B2B marketing in China.

1. How do I make an overseas WeChat official account?

Many non-Chinese businesses create an overseas WeChat official account because they provide almost the same functions as a native WeChat account First, you have to pick the right account type Account registration also requires information such as company registration and admin’s personal and contact information What follow are account verification, registration payment, and profile and menu content setup

2. How can I open a website in China without an ICP Filing/License?

Companies must obtain the Internet Content Provider (ICP) Filing (for non-commercial websites) or License (for commercial websites) to host websites on servers in China, but the application process can be long, complicated, costly, and most importantly requires a Mainland China Business Registration Certificate If you only need a simple landing page to deliver core corporate information and collect leads, building a H5 page, with the help of an agency, running on your WeChat official account can be a great alternative

3. What are the advertising regulatory considerations for B2B marketing in China?

Regulatory compliance is paramount for international firms engaged in B2B marketing in China Adhering to the Advertising Law is crucial, as it governs advertisement content, format, and disclosure requirements. For example, words related to “the best”, “the only”, “cheapest”, “global/national level” or implying a definite result are forbidden. The examples are just the tip of the iceberg. To avoid getting into trouble, seeking guidance from advertising experts and staying updated on regulations is essential.

“Localisation is key when entering the Chinese market. It's not just about translating content; it's about adapting your messaging, visuals, and branding to resonate with the local audience.”

Feeling excited and apprehensive about expanding into China? B2B marketing in China poses challenges for international firms, but with the right strategies, success is within reach By adopting a multi-channel approach and complying with relevant regulations, businesses can tap into China's vast B2B market Seek guidance from experts to tailor your approach and embark on a successful China marketing journey

About INITSOC

Founded in 2014, INITSOC is an innovative and passionate awardwinning digital marketing agency with a team of experts located in Hong Kong, Shanghai, Taiwan and London. We provide tailor-made one-stop digital solutions with our experiences driving data technologies, as a valued partner whom you can trust, drop an email to sales@initsoc.com if you need to maximise your digital marketing results.

Jolie Wan Consultant of China Marketing INITSOC

HOW LAWYERS AND COUNSELLORS CAN MAKE DIVORCE LESS STRESSFUL FOR COUPLES?

BY HONG KONG COUNSELLOR & WITHERS

When a marriage ends, both partners may experience pain. Divorce is an incredibly challenging and stressful experience for all parties involved It is a period of immense emotional turmoil, convoluted legal procedures, and financial strain that can take a significant toll on one's well-being. A couple going through divorce may decide to start therapy as a way to cope with this traumatic and difficult phase in their lives Whether the client has initiated the divorce or was not ready to separate, divorce can be mentally and emotionally challenging Nevertheless, with the assistance of experienced family lawyers and counsellors, couples can navigate this taxing process with less stress and more confidence.

Role of Family Lawyers

Providing a clear outline of the case strategy and next steps

Divorce proceedings are complex. Various procedures are involved, from the first appointment to maintenance pending suit, ancillary relief, children appointment, custody, and more The legal jargons and procedures involved can be overwhelming, and

filling out court forms like the notorious Form E (i.e. financial statement) and bundling voluminous documents such as bank statements and company records can be a daunting task

However, family lawyers can provide a clear outline of the case strategy and next steps, helping clients comprehend the process and what to expect in the coming months. By ensuring that spouses have all the necessary documentation and that everything is correctly filled out and submitted on time, family lawyers save the spouses time and hassle, allowing them to focus on other aspects of their lives during this difficult period

Protecting spouses' best interests

Spouses going through a divorce have a lot to say about their relationship, but they often struggle to articulate their thoughts in court. Divorce proceedings such as ancillary relief and child custody typically involve a lot of disputes on facts and necessitate the parties to tell their marriage and future plans in a highly organized manner Family lawyers can help spouses present their case in a way that is compelling and clear to the court, ensuring that the judge has all the necessary information to make a fair decision.

Moreover, the final order for divorce does not necessarily mean an end to the turmoil. Even if the court rules in favour of one spouse, the other may not always adhere to the court order Lawyers can assist with the enforcement of court rulings, ensuring that their clients receive what they are entitled to In the event that the other spouse refuses to make payment or removes the children from Hong Kong in breach of the court orders, solicitors can take immediate actions to enforce the court orders.

Providing an objective perspective

Family lawyers also provide an objective perspective, which is critical during the divorce process. Spouses can become emotional, and their judgment may be clouded by their feelings. They may see their expartners with anger and resentment and feel that the other side should not be entitled to anything Family lawyers can provide a more objective perspective, helping spouses make more realistic demands when it comes to mediation with their ex-spouses This can help spouses reach a settlement more easily and make the process less stressful for everyone involved.

Helping spouses stay focused on the future

Divorce can be a time when people cling too much to the past Family lawyers can help guide spouses to ask the right questions Instead of ruminating on the failed relationship, spouses are encouraged to plan for the future, such as what they will do with their children and what kind of life they want to lead after the

divorce. Lawyers can assist their clients in setting their monthly spending and how much time they want to spend with their children This can help spouses move forward and have a more positive outlook on their future after the divorce

Role of Counsellors

Making the process less stressful

Counsellors can help couples navigate the complex emotional and practical challenges of divorce and provide them with the tools they need to move forward One way counsellors can make divorce less stressful for couples is by providing pre-divorce counselling, helping couples to improve their communication skills, identify and address underlying issues, and work towards a resolution. By addressing these issues before the divorce process begins, couples can reduce the stress and conflict that often arise during the process.

During the divorce process, counsellors can also help couples manage the five stages of divorce -- denial, anger, bargaining, depression and acceptance Helping them with their difficult emotions and developing coping mechanisms at each stage.

Expressing positive emotions in a healthy way and managing expectations

Divorce can be a traumatic experience, and it is important for couples to have a safe space to express their feelings and work through their emotions. Counsellors can provide this space, and help couples develop strategies for managing stress and anxiety. The couple can choose to go through individual therapy to help manage their expectations during a divorce This can include helping them to understand the legal implications of a divorce or separation, and to develop realistic expectations about the process and its outcomes By managing expectations, individuals can reduce stress and uncertainty, and

can focus their energy on moving forward in a positive way. It teaches them to better understand the breakdown of the marriage and also helps them understand themselves better, their needs and wants, helping them rediscover themselves through personal growth and development

Counsellors can also provide support to children who are affected by divorce. Divorce can be an especially challenging experience for children, and a counsellor can help them to work through their feelings and emotions, and to develop coping strategies to deal with the changes in their family dynamic

The power of effective communication

Another way in which counsellors can make divorce less stressful is by helping individuals to communicate effectively Communication is often a major challenge during a divorce, as tensions may be high and conflicts may arise easily A counsellor can teach individuals how to communicate effectively and can mediate conversations to manage conflicts and help everyone involved to reach agreement.

Conclusion

Divorce is a journey of self-discovery, an opportunity to reflect on the past and plan for the future It is a time when individuals can redefine themselves, their values, and their aspirations. However, divorce can also be a time of immense loneliness and isolation. The proceedings are complex and emotionally charged, making it one of the most stressful experiences Nevertheless, with the help of lawyers and counsellors, spouses can navigate this trying process more efficiently and alleviate some of the stress associated with divorce proceedings

By seeking professional support, spouses can move forward with a positive outlook on their future after the divorce.

About Hong Kong Counsellor

HK Counsellor is a Hong Kong-based private psychotherapy and counselling practice for individuals, couples and corporates. We provide both online and inperson counselling for clients in Hong Kong and internationally. For more, visit hkcounsellor.com.

About Withers

Withers is an international law firm with a broad-ranging client base including multinational corporations, governments, international institutions and individuals and their businesses. With over 220 partners, more than 1500 employees and 17 offices worldwide, we have unparalleled expertise in commercial, tax, trusts, estate planning, financial services, litigation and international arbitration, public international law, real estate, charities, philanthropy, employment, family law and other legal issues facing individuals and their families. For more, visit withersworldwide.com.

Anisha Ramanathan (Bio) Partner Withers

Reshma Chugh (Bio) Counsellor/ Psychologist Hong Kong Counseller

Setting up life as an expat in Hong Kong can be an exciting, if rather daunting, step. With a range of considerations and decisions to make – financial and otherwise – making a home here benefits from careful planning. Matthew Curtis, Chartered Financial Planner at The Fry Group’s Hong Kong office, looks at some of the important steps to consider.

It’s clear that the financial challenges of moving to a new country can be unsettling Recent research on those who are planning or have recently moved abroad notes the impact that complex financial admin can have on the early days of a move Around half of those that took part in the research identified that juggling finances between two locations was a particular concern, with taxes a significant consideration for three in five of those responding (source: Ipsos)

Becoming an expat can offer enormous opportunities with a range of benefits; a better lifestyle and career prospects along with the chance to travel and experience a different culture. Ensuring your finances are well managed, and your tax obligations are met, means you can take advantage of your new expat status without unnecessary financial pressures.

So, what are the top financial issues which British expats in Hong Kong need to think about?

Local tax

One of the first changes to take account of are how the local tax laws and system may be different So, if you’re relocating to Hong Kong from the UK, a key change to adapt to will be in how you pay your tax Rather than as part of your salary, in Hong Kong any tax on your earnings is generally payable in one lump sum on an annual basis

Just as in most tax systems, there are some tax planning opportunities available in Hong Kong. Two of the most relevant are likely to be the rental reimbursement scheme and voluntary contributions to Hong Kong pension schemes. These can certainly help you maximise your wealth.

Will you become non-UK tax resident?

If you are able to break UK tax residency, it will limit your UK tax liabilities It is important to understand your limits for visiting the UK in order to maintain a non-UK tax residence status, and also your ongoing reporting requirements with HM Revenue It may be necessary to be non-UK resident for more than five years to escape UK Capital Gains Tax on the sale of assets – apart from UK land and property, which will always be within the charge to UK tax no matter how long you have been an expat

Cost of living

The costs of living and the types of expenses you will incur while living in Hong Kong are very likely to be different from the UK. Make sure you have understood what your monthly outgoings will be and ensure you have adequate medical insurance to meet your family’s needs.

UK property

Many British expats choose to keep a foothold in the UK by holding on to the family home, renting it out or buying a UK investment property whilst living overseas Special rules apply if you’re a non-UK resident landlord or live abroad usually for more than six months, and receive rental income. If you live overseas and let a property using an agent, they must follow the scheme and deduct basic rate tax from your rental income before they pass it on to you, unless they’ve permission from HMRC not to. You can offset this against your own tax bill at the end of the year by submitting a Self-Assessment Tax Return.

If you’re selling a UK property, you may face Capital Gains Tax. The rules around taxation of UK property can be complicated so it's important to understand how they apply to you before making any decisions.

Pensions and retirement savings

It’s important to ensure you have a robust pension or retirement savings plan in place When it comes to expat pensions you may have more options available, and which you could make the most of whilst you’re overseas Some UK schemes can be put on ice, especially if they offer benefits which it would be sensible to keep hold of.

If you’ve recently left the UK and have an existing defined contribution personal pension from when you were resident, you may be able to continue to contribute to it in the tax year in which you leave the UK, and for up to five tax years after. These contributions could be £3,600 gross each year, and in certain circumstances, if you have taxable employment income in the UK, you may be able to contribute higher amounts.

Estate matters

One of the most common points which is overlooked after a move overseas relates to your Estate plans If you have a family, it’s important to check whether your existing Will covers the appointment of guardians to help navigate local laws in Hong Kong Having this in place means, if the worst should happen, your family will be taken care of in line with your wishes

With adjustments to your financial plans taken care of, you can enjoy spending time exploring all that Hong Kong has to offer – various hiking trails, a new and interesting culture, the islands and beaches or travelling the region. These pursuits might be some of the reasons why you chose to relocate to Hong Kong in the first place! So, getting your finances in order will afford you the freedom to embrace these exciting parts of expat life.

With eight offices around the world, including Hong Kong, many of our team have experienced a move overseas themselves and enjoyed time abroad as expats Together with their knowledge and expertise covering a wide range of tax and financial matters, they can offer practical and informative advice during your time in Asia

About The Fry Group

The Fry Group are tax, estate and financial planning experts Established in 1898 with offices throughout the UK, and in Belgium, Hong Kong, Dubai and Singapore, they specialise in helping British people throughout the world in all aspects of their financial planning and have been proud sponsors of The British Club for more than 10 years

www.thefrygroup.hk

E: info@thefrygroup.hk

Matthew Curtis Chartered Financial Planner

T: +852 2526 9488

This article has been produced with the aim to provide information. However, this is not intended to form professional advice nor should it be relied upon as such and before taking any particular action, specic and personal advice should be obtained. All levels and basis of, and relief from taxation illustrated here are subject to change. The Fry Group (H.K.) Limited is licensed to conduct investment advisory and asset management in Hong Kong by the Securities & Futures Commission (SFC; CE Number: ATY965) and is licensed as an insurance broker by the Insurance Authority (IA; Licence Number: FB1207)