China and Hong Kong
Gong hei fat choy! As a new year begins
in the Chinese calendar, Robert Outram
compares the experiences of CAs in the
People’s Republic and Hong Kong
economy
Victoria Harbour
in Hong K
ong
of the world’s
most dynamic
China’
s ec
onomic
economies, both
centr
e in Shanghai in China itself and
in Hong Kong.
Alan Powrie is a
CA based in Hong
Kong and was a
director of Hurray,
the “wireless value-
added services”
business – it sup-
plies ringtones,
C
hina and Chinese wallpapers, online
people around the music and other
world have just been cel- quarter, compared services for mobile
ebrating the Lunar New with the same period in 2008). telecoms providers – until
Year. 2010 in the Chinese calen- Fears over the impact of the China’s biggest online gaming
dar is designated as the year of financial crisis led the Chinese company, Shanda Interactive,
the Tiger. This is a “Metal Tiger” government to sanction a $585bn took the business over.
year, which is variously seen as (£374bn) stimulus package. It He is currently working on an
auspicious (“the Golden Tiger”) seems to have worked so well initial public offering (IPO) for
or problematic (“the White that Beijing is now becoming another, undisclosed company.
Tiger”), but in either case it is concerned about inflation. Powrie says: “The recession
considered to be a time of con- Depending on the basis on mainly affected China in the
flict, challenge and ambition. which it is calculated, either the export manufacturing sector,
This does not seem an inappro- Chinese economy is set to over- which is now recovering, as well
priate forecast for China. Despite take Japan as the world’s second in certain high ticket imported
a turbulent global economy, biggest at some point later this products into China. The Chinese
growth has surged ahead in the year, or it has already done so. government has put huge
People’s Republic, with gross It’s no surprise therefore, amounts of stimulus into the
domestic product rising 8.7 per that ICAS members are among market, fuelling a real estate and
cent (up 10.7 per cent in the last those working alongside one stock market boom, although
some attempts are now being
made to rein in these markets.
Keeping up to date with the fast-changing
“Two trends are evident. First,
laws and regulations is a challenge, but
the continued push to acquire
mineral and energy resources
having these challenges is what makes life outside China and second, the
so interesting here!” STEPHEN MERCER
increased activity in mainland
Chinese companies investing
{6} NEW CA www.camagonline.co.uk/newca
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