China to stiffen spy law amid Western espionage fears

China, claiming to have been targeted by various espionage activities from the West, is stepping up its anti-spy efforts.

According to a pending legal amendment expected to be approved on April 26, the coverage of spying charges will be expanded from theft of “state secrets” to “all data and items related to national security.” Cyber attacks will also be covered.

Some commentators say the strengthening of the anti-spy law raises fears of a crackdown on foreign companies and individuals in China.

The law change comes after Dong Yuyu, deputy head of the editorial department at Guangming Daily, faced spying charges for interacting with diplomatic and academic contacts from Japan and the United States.

Meanwhile, a senior employee of Japanese pharmaceutical firm Astellas Pharma was arrested last month on suspicion of engaging in espionage activities. And in a separate case, five Chinese staff of the Mintz Group, a United States due diligence firm, were also arrested in Beijing last month. 

On Monday, Chinese state media reported that “espionage activities” will be defined as following:

  1. To carry out or instigate or finance others to carry out activities that endanger the national security of the People’s Republic of China;
  2. To join, accept tasks from or take refuge in an espionage organization or its agents;
  3. To steal, spy on, buy and illegally provide state secrets and intelligence, as well as other documents, data, materials and items related to national security and interests or to instigate, lure, coerce, or bribe state staff to mutiny;
  4. To attack, intrude, interfere, control and damage the cyber facilities of state institutions, secret-related units or key information infrastructure;
  5. To indicate the target for the enemy to attack;
  6. To carry out other espionage activities.

New wordings include the parts about cyber-attack and “other documents, data, materials and items related to national security and interests.”

According to the government’s propaganda published last October, major espionage organizations include MI6, CIA, Russia’s Federal Security Service (FSB), Israel’s Institute for Intelligence and Special Operations (MOSSAD), Korean Central Intelligence Agency (KCIA) and Japan’s Defense Intelligence Headquarters (DIH).

People who are singled out for being easily instigated by espionage organizations include those who enjoy luxurious lifestyles; those who fantasize about the West and its thinking and derogate China’s systems; self-centric people who seek public attention; and people who have low morality.

Professional spying tools include traditional hidden cameras, clandestine listening devices and phone interceptors, as well as “umbrella guns” and spying glasses and headphones.

“Espionage activities are very close to us,” the government says in an anti-spy banner. “Retired officers, overseas students, high-school teachers, military fans and staff of military-industrial complex companies, national defense research institutions and government departments are major targets of espionage organizations.”

It says some young netizens may be used by foreign agents during online chats without knowing it. It says all people must stay alert and help build an iron wall to safeguard national security.

Making an example

Dong Yuyu, deputy head of the editorial department at Guangming Daily, faces charges. Photo: Jiefang Daily

The Wall Street Journal reported on Monday that Dong Yuyu was arrested when eating lunch with a Japanese “diplomat” at a restaurant in a hotel in February last year.

Citing a statement from Dong’s family, the report said the diplomat was released after several hours but Dong has remained in detention. It said the family was told that Dong will be tried but the date is unclear.

Dong graduated from Peking University and received a doctorate degree in law. He was awarded a Nieman fellowship at Harvard University in 2006-07 and became a visiting fellow at Keio University in Japan in 2010. He also served as a visiting professor at Hokkaido University in Japan.

“Dong Yuyu is an accomplished journalist whose work as a newspaper reporter and author demonstrate a long record of pro-reform writing,” Nieman Foundation curator Ann Marie Lipinski says in a statement. “His Nieman classmates knew him as objective in life and in work, and any speculation that his journalism fellowship offers evidence of espionage is ill-founded.” 

More than 60 foreign academics and journalists signed an open letter supporting Dong.  Japanese Foreign Minister Yoshimasa Hayashi declined to comment due to the sensitivity of the issue. 

From the commentariat

A Liaoning-based military columnist, called Shanshi, alleges in an article published on April 25 that Dong has had close relationships with foreign intelligence agencies and says the arrested man has been paid to go abroad many times using academic scholarships.

Shanshi says the arrest of Dong, a high-profile media worker, shows the seriousness of China’s anti-spy fight. He says Dong and some previously convicted people have certain things in common.

“They are enjoying the fruits of our country’s development but cannot see the clear fact that our country is constantly developing and progressing in all aspects,” he says. “They hold a completely negative attitude toward all aspects of our society and fully accept the bad ideas of the West.”

“Under the cover of their glamorous titles and prominent social status, these people are doing criminal activities to harm the country,” he adds. “They make the public very angry!”

Based on the 1993 National Security Law, China launched an anti-spy law in 2014.

Since the implementation of the counterespionage law in China in 2014, at least 17 Japanese nationals have been detained in China for alleged involvement in espionage activities, according to the Japanese Foreign Ministry. Five of them are still being held in China.

In August and December 2022, the NPC Standing Committee held the first and second readings of the amendment bill.

“The current situation of anti-espionage struggle is extremely severe,” Zang Tiewei, spokesman of the legal affairs commission, NPC Standing Committee, said in a media briefing on April 21. “Traditional security threats and non-traditional ones are intertwined.”

“Espionage and intelligence activities are getting increasingly complex, with wider fields, more diverse targets and more covert methods,” he said.

A paramilitary policeman gestures under a pole with security cameras, US and China’s flags near the Forbidden City ahead of the visit by US President Donald Trump to Beijing, China November 8, 2017. Photo: Agencies

He said the amendment of the anti-espionage law will resolve problems such as the narrow definition of “espionage,” the incomplete security and prevention systems and the insufficient empowerment of law enforcement.

Zang said the NPC received 201 suggestions from 112 people during the public consultation period. Citing public opinion, he said cyber-spying should be curbed while the national security department should lead the country’s anti-espionage education.

The bill was submitted to the standing committee of the National People’s Congress (NPC) on Monday and is expected to be passed on April 26.

Read: HK banks sweat fast execution of anti-sanctions law

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Japan firm fails in bid for historic moon landing

He said the firm is currently developing two further attempts to land on the lunar surface and the setback would not change that. Still, the apparent crash will be a frustrating end to a mission that began with the lander’s launch last December aboard a SpaceX Falcon 9 rocket. TheContinue Reading

British American Tobacco to pay 5m for North Korea sanctions breaches

KJU smoking in 2017Getty Images

British American Tobacco is to pay $635m (£512m) plus interest to US authorities after a subsidiary admitted selling cigarettes to North Korea in violation of sanctions.

The US authorities said the settlement related to BAT activity in North Korea between 2007 and 2017.

BAT’s head Jack Bowles said “we deeply regret the misconduct”.

The US has imposed severe sanctions on North Korea over its nuclear and ballistic missile activities.

Tuesday’s settlement was between BAT and America’s Department of Justice (DOJ) and the Treasury Department’s Office of Foreign Assets Control.

BAT is one of the world’s largest tobacco multinationals and one of the UK’s 10 biggest companies. It owns major cigarette brands including Lucky Strike, Dunhill and Pall Mall.

In a statement, BAT said it had entered into a “deferred prosecution agreement with DOJ and a civil settlement agreement with OFAC, and an indirect BAT subsidiary in Singapore has entered into a plea agreement with DOJ”.

The DOJ said BAT had also conspired to defraud financial institutions in order to get them to process transactions on behalf of North Korean entities.

North Korean leader Kim Jong Un is known to be a heavy smoker. Last year the US attempted to get the UN Security Council to ban tobacco exports to North Korea, but this was vetoed by Russia and China.

The justice department also revealed criminal charges against North Korean banker Sim Hyon-Sop, 39, and Chinese facilitators Qin Guoming, 60, and Han Linlin, 41, for facilitating sales of tobacco to North Korea.

They were accused of buying leaf tobacco for North Korean state owned cigarette makers and falsifying documents to trick US banks into processing transactions worth $74m. North Korean manufacturers including one owned by the military made about $700m thanks to these deals.

The DOJ announced rewards of $1m for information leading to the capture of Mr Sim and $500,000 each for Mr Qin and Mr Han, who all remain at large.

Pyongyang has for years faced multiple rounds of tough sanctions in response to its ballistic missile launches and nuclear tests.

However that has not deterred Mr Kim from continuing to develop the country’s weapons programme.

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Asia’s Best Managed Companies 2023 – Market winners

Every year, FinanceAsia publishes its highly regarded benchmark of Asia’s best companies.

Based on nomination by Asia’s active community of influential investors and financial analysts, the poll evaluates the corporate behaviour and performance of Asian peers over the past 12 months.

It is with this in mind that the FA team is delighted to announce the winners for 2023.

Following very positive market participation, we have decided to award up to three medals per category to reflect corporate achievements. Gold, silver and bronze medallists are detailed where applicable.

Read on for the winners of the following categories:

– Best Overall Company
– Best Large-cap
– Best Mid-cap
– Best Small-cap
– Best Corporate Esg Strategy
– Best DEI Strategy
– Best Investor Relations
– Best CEO
– Best CFO

Don’t forget to read about our Industry Winners here.

Thank you to all those who participated and congratulations!

—  WINNERS BY MARKET —

— Best Overall Company —

China
Gold – China United Network Communications Group Co., Ltd.
Silver – Tencent Holdings Ltd.
Bronze – Xiaomi Inc.

Hong Kong SAR
Gold – Sun Hung Kai Properties Ltd.
Silver – Link Real Estate Investment Trust
Bronze – Swire Pacific Ltd.

India
Gold – Tata Consultancy Services Ltd. & Tata Power Company Ltd.
Silver – Infosys Consultants Private Ltd.
Bronze – Hdfc Bank Ltd.

Indonesia
Gold – Pt. Bank Rakyat Indonesia (Persero) Tbk
Silver – Pt Bank Negara Indonesia (Persero), Tbk
Bronze – Pt Bank Mandiri (Persero) Tbk

Philippines
Gold – Sm Prime Holdings, Inc. / Megawide Construction Corporation
Silver – Bank Of The Philippine Islands
Bronze – Ayala Corporation

Singapore
Gold – Amtd Group Company Ltd.
Silver – Dbs Bank Ltd.

Taiwan
Gold – Chunghwa Telecom Company, Ltd.
Silver – Far Eastern New Century Corporation
Bronze – Far Eastone Telecommunications Co., Ltd. & Wistron Neweb Corporation

Thailand
Gold – Ptt Global Chemical Public Company Ltd.
Silver – B. Grimm Power Public Company Ltd.
Bronze – Central Retail Corporation Public Company Ltd.

Vietnam
Gold – Vingroup Joint Stock Company
Silver – Vinfast Joint Stock Company
Bronze – Vinhomes Joint Stock Company

— Best Large-cap —

China
Gold – China Mobile Ltd.
Silver – Wuxi Biologics Cayman Inc.

Indonesia
Gold – Pt. Bank Rakyat Indonesia (Persero) Tbk
Silver – Pt Bank Mandiri (Persero) Tbk
Bronze – Pt Bank Central Asia Tbk

Taiwan
Gold – Far Eastone Telecommunications Co., Ltd.
Silver – Chunghwa Telecom Company, Ltd.

— Best Mid-cap —

Hong Kong SAR
Gold – Asiainfo Technologies Ltd.

Indonesia
Gold – Pt Bank Tabungan Negara (Persero) Tbk
Silver – Pt Perusahaan Minyak Nasional
Bronze – Pt Mayora Indah Tbk

Philippines
Gold – Bloomberry Resorts Corporation
Silver – Sm Prime Holdings, Inc.
Bronze – Gt Capital Holdings, Inc.

Taiwan
Gold – Far Eastern New Century Corporation

— Best Small-cap —

China
Gold – Yiren Digital Ltd.
Silver – Tarena International Inc.
Bronze – Hello Group Inc.

Hong Kong SAR
Gold – Sa Sa International Holdings
Silver – Far East Consortium International Ltd.
Bronze – Viva China Holdings Ltd.

Indonesia
Gold – Pt Bank Keb Hana Indonesia
Silver – Pt Perikanan Nusantara (Persero)
Bronze – Pt Adi Sarana Armada Tbk

Philippines
Gold – Manila Water Company, Inc.
Silver – Security Bank Corporation
Bronze – Megawide Construction Corporation

Singapore
Gold – Amtd Digital Inc.

Taiwan
Gold – Wistron Neweb Corporation
Silver – Hwahsia Glass Co., Ltd.

Thailand
Gold – Dohome Public Company Ltd.
Silver – Forth Corporation Public Company Ltd.
Bronze – Gunkul Engineering Public Company Ltd.

— Best Corporate Esg Strategy —

China
Gold – China Telecom Corporation, Ltd.
Silver – Wuxi Biologics Cayman Inc.
Bronze – Meituan Inc.

Hong Kong SAR
Gold – Sun Hung Kai Properties Ltd.
Silver – Sino Land Company Ltd.
Bronze – The Mass Transit Railway Corporation

India
Gold – Infosys Consultants Private Ltd.
Silver – Tata Power Company Ltd.

Indonesia
Gold – Pt. Bank Rakyat Indonesia (Persero) Tbk
Silver – Pt Bank Mandiri (Persero) Tbk
Bronze – Pt Bank Negara Indonesia (Persero), Tbk

Philippines
Gold – Ayala Corporation
Silver – Sm Prime Holdings, Inc.
Bronze – Sm Investments Corporation

Singapore
Gold – Sp Group Pte. Ltd.

Taiwan
Gold – Chunghwa Telecom Company, Ltd.
Silver – Wistron Neweb Corporation
Bronze – Far Eastern New Century Corporation

Thailand
Gold – B. Grimm Power Public Company Ltd.
Silver – Ptt Global Chemical Public Company Ltd.

Vietnam
Gold – Vinfast Joint Stock Company
Silver – Vingroup Joint Stock Company
Bronze – Vinhomes Joint Stock Company

— Best DEI Strategy —

China
Gold – China United Network Communications Group Co., Ltd.
Silver – Baidu, Inc.
Bronze – Trip.Com Group Ltd.

Hong Kong SAR
Gold – Far East Consortium International Ltd.
Silver – Asiainfo Technologies Ltd.

India
Gold – Tata Power Company Ltd.

Indonesia
Gold – Pt. Bank Rakyat Indonesia (Persero) Tbk
Silver – Pt Bank Negara Indonesia (Persero), Tbk
Bronze – Pt Bank Mandiri (Persero) Tbk

Philippines
Gold – Sm Prime Holdings, Inc.

Taiwan
Gold – Wistron Neweb Corporation
Silver – Far Eastern New Century Corporation
Bronze – Chunghwa Telecom Company, Ltd.

Thailand
Gold – B. Grimm Power Public Company Ltd.

Vietnam
Gold – Vinfast Joint Stock Company

— Best Investor Relations —

China
Gold – China United Network Communications Group Co., Ltd.
Silver – Asiainfo Technologies Ltd.
Bronze – Wuxi Biologics Cayman Inc.

Hong Kong SAR
Gold – Far East Consortium International Ltd.
Silver – Sun Hung Kai Properties Ltd.
Bronze – Asiainfo Technologies Ltd.

India
Gold – Tata Power Company Ltd.
Silver – Tata Motors Ltd.
Bronze – Titan Company Ltd.

Indonesia
Gold – Pt. Bank Rakyat Indonesia (Persero) Tbk
Silver – Pt Bank Negara Indonesia (Persero), Tbk
Bronze – Pt Bank Mandiri (Persero) Tbk

Philippines
Gold – Sm Prime Holdings, Inc.
Silver – Bdo Unibank, Inc.
Bronze – International Container Terminal Services, Inc.

Taiwan
Gold – Wistron Neweb Corporation
Silver – Far Eastern New Century Corporation
Bronze – Far Eastone Telecommunications Co., Ltd. & Chunghwa Telecom Company, Ltd.

Thailand
Gold – Central Retail Corporation Public Company Ltd.
Silver – Dohome Public Company Ltd.
Bronze – B. Grimm Power Public Company Ltd.

Vietnam
Gold – Vingroup Joint Stock Company
Silver – Vinhomes Joint Stock Company
Bronze – Vinfast Joint Stock Company

— Best CEO —

China
Gold – Liu Qiangdong – Jd.Com, Inc
Silver – Pony Ma Huateng – Tencent Holdings Ltd.
Bronze – Ke Ruiwen – China Telecom Corporation, Ltd.

Hong Kong SAR
Gold – Adrian Cheng – New World Development Company Ltd.
Silver – David Chiu – Far East Consortium International Ltd.
Bronze – Raymond Kwok – Sun Hung Kai Properties Ltd.

India
Gold – Rajesh Gopinathan – Tata Consultancy Services Ltd.
Silver – Sandeep Bakhshi – Icici Bank Ltd.

Indonesia
Gold – Sunarso – Pt. Bank Rakyat Indonesia (Persero) Tbk
Silver – Royke Tumilaar – Pt Bank Negara Indonesia (Persero), Tbk
Bronze – Jahja Setiaatmadja – Pt Bank Central Asia Tbk

Philippines
Gold – Jeffrey C Lim – Sm Prime Holdings, Inc. & Tg Limcaoco – Bank Of The Philippine Islands
Silver – Edgar Saavedra – Megawide Construction Corporation
Bronze – Enrique K Razon – International Container Terminal Services, Inc. /Bloomberry Resorts Corporation

Singapore
Gold – Piyush Gupta – Dbs Bank Ltd.

Taiwan
Gold – Chee Ching – Far Eastone Telecommunications Co., Ltd.
Silver – Douglas Tong Hsu – Far Eastern New Century Corporation
Bronze – Jeffrey Gau – Wistron Neweb Corporation

Thailand
Gold – Preeyanart Sunthornwatha – B. Grimm Power Public Company Ltd.
Silver – Phawat Witoopakorn – Eastern Polymer Group Public Company Ltd.
Bronze – Gunkul Dumrongpiyawut – Gunkul Engineering Public Company Ltd.

Vietnam
Gold – Le Thi Thu Thuy – Vinfast Joint Stock Company

— Best CFO —

China
Gold – Li Yuchao – China United Network Communications Group Co., Ltd.
Silver – Li Yinghui – China Telecom Corporation, Ltd.
Bronze – Li Ronghua – China Mobile Ltd.

Hong Kong SAR
Gold – Vanessa Lau – Hong Kong Exchanges And Clearing Ltd.
Silver – Brian Sum – Sun Hung Kai Properties Ltd.
Bronze – Edward Lau – New World Development Company Ltd.

Indonesia
Gold – Viviana Dyah Ayu Retno K – Pt. Bank Rakyat Indonesia (Persero) Tbk
Silver – Sigit Prastowo – Pt Bank Mandiri (Persero) Tbk
Bronze – Novita Widya Anggraini – Pt Bank Negara Indonesia (Persero), Tbk

Philippines
Gold – John Nai Peng Ong – Sm Prime Holdings, Inc.
Silver – Estela Tuason-Occena – Bloomberry Resorts Corporation
Bronze – Riza Maniego – Globe Telecom, Inc.

Singapore
Gold – Chng Sok Hui – Dbs Bank Ltd.

Taiwan
Gold – David Wang – Far Eastern New Century Corporation
Silver – Jona Song – Wistron Neweb Corporation

Thailand
Gold – Siriwong Borvornboonrutai – B. Grimm Power Public Company Ltd.

Vietnam
Gold – David Mansfield – Vinfast Joint Stock Company

 

¬ Haymarket Media Limited. All rights reserved.

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Asia’s Best Managed Companies 2023 – Industry winners

Every year, FinanceAsia publishes its highly regarded benchmark of Asia’s best companies.

Based on nomination by Asia’s active community of influential investors and financial analysts, the poll evaluates the corporate behaviour and performance of Asian peers over the past 12 months.

It is with this in mind that the FA team is delighted to announce the winners for 2023.

Following very positive market participation, we have decided to award up to three medals per category to reflect corporate achievements. Gold, silver and bronze medallists are detailed where applicable.

Read on for the winners of the following categories:

– Best Basic Materials Company
– Best Consumer Cyclicals Company
– Best Consumer Non-Cyclicals Company
– Best Energy Company
– Best Financial Company
– Best Healthcare Company
– Best Industrials Company
– Best Real Estate Company
– Best Technology Company
– Best Telecommunications Company
– Best Utilities Company

Don’t forget to read about our Market Winners here.

Thank you to all those who participated and congratulations!

— WINNERS BY SECTOR —

— Basic Materials Company —

Indonesia
Gold – PT Aneka Tambang Tbk
Silver – PT Krakatau Steel (Persero) Tbk & PT Petrokimia Gresik

Philippines
Gold – Nickel Asia Corporation

Taiwan
Gold – Far Eastern New Century Corporation

— Consumer Cyclicals Company —

Hong Kong SAR
Gold – ANTA Sports Products Ltd.
Silver – Viva China Holdings Ltd.

Indonesia
Gold – PT Mitra Adiperkasa Tbk
Silver – PT Erajaya Swasembada Tbk
Bronze -mPT Media Nusantara Citra Tbk

Philippines
Gold – Megawide Construction Corporation

Taiwan
Gold – Far Eastern New Century Corporation

— Consumer Non-Cyclicals Company —

China
Gold – Chongqing Hongjiu Fruit Company, Ltd.

Hong Kong SAR
Gold – Hengan International Group Company, Ltd.
Silver – Chongqing Hongjiu Fruit Company, Ltd.

Indonesia
Gold – PT Unilever Indonesia Tbk
Silver – PT Indofood CBP Sukses Makmur Tbk
Bronze – PT Sumber Alfaria Trijaya Tbk

Taiwan
Gold – Far Eastone Telecommunications Co., Ltd.

— Best Energy Company —

China
Gold – China Shenhua Energy Company Ltd.
Silver – CNOOC Ltd
Bronze – China Petroleum & Chemical Corporation

Indonesia
Gold – PT Perusahaan Minyak Nasional
Silver – PT Adaro Energy Indonesia Tbk
Bronze – PT AKR Corporindo Tbk & PT Perusahaan Listrik Negara (Persero)

Philippines
Gold – Aboitiz Power Corporation
Silver – ACEN Corporation & Semirara Mining And Power Corporation

Taiwan
Gold – Far Eastern New Century Corporation

Thailand
Gold – B. Grimm Power Public Company Ltd.
Silver – Energy Absolute Public Company Ltd. & Gunkul Engineering Public Company Ltd.

— Best Financial Company —

China
Gold – Industrial and Commercial Bank Of China (Asia) Ltd.
Silver – China Life Insurance Company Ltd.
Bronze – American International Assurance Company Ltd.

Indonesia
Gold – PT. Bank Rakyat Indonesia (Persero) Tbk
Silver – PT Bank Negara Indonesia (Persero), Tbk & PT Bank Mandiri (Persero) Tbk
Bronze – PT Bank Central Asia Tbk

Philippines
Gold – Bank Of The Philippine Islands
Silver – BDO Unibank, Inc. & Metropolitan Bank & Trust Company

Taiwan
Gold – Cathay Financial Holding Company, Ltd.
Silver – Chailease Holding Company Ltd. & First Financial Holding Company Ltd.

— Best Healthcare Company —

China
Gold – Wuxi Biologics Cayman Inc. & Innovent Biologics, Inc.
Silver – Akeso, Inc.

Hong Kong SAR
Gold – Sino Biopharmaceutical Ltd.
Silver – Canbridge Pharmaceuticals Inc.

India
Gold – Apollo Hospitals Enterprises Ltd

Indonesia
Gold – PT Prodia Widyahusada Tbk
Silver – PT Kalbe Farma Tbk
Bronze – PT Medikaloka Hermina Tbk

Thailand
Gold – Bangkok Dusit Medical Services Public Company Ltd.
Silver – Intermedical Care and Lab Hospital Public Company Ltd.
Bronze – Praram 9 Hospital Public Company Ltd.

— Best Industrials Company —

Hong Kong SAR
Gold – TK Group Holdings Ltd.

Indonesia
Gold – PT Astra International Tbk
Silver – PT United Tractors Tbk
Bronze – PT Krakatau Steel (Persero) Tbk

Taiwan
Gold – Far Eastern New Century Corporation

— Best Real Estate Company —

China
Gold – China Resources Land Ltd.

Hong Kong SAR
Gold – Far East Consortium International Ltd.
Silver – Sun Hung Kai Properties Ltd.
Bronze – Swire Properties Company Ltd.

Indonesia
Gold – PT Ciputra Development Tbk
Silver – PT Bumi Serpong Damai Tbk
Bronze – PT Pakuwon Jati Tbk

Philippines
Gold – SM Prime Holdings, Inc.
Silver – Ayala Land, Inc. & Robinsons Land Corporation

Taiwan
Gold – Far Eastern New Century Corporation

Thailand
Gold – Origin Property Public Company Ltd.
Silver – Quality Houses Public Company Ltd.

Vietnam
Gold – Vinhomes Joint Stock Company

— Best Technology Company —

China
Gold – Tencent Holdings Ltd.
Silver – JD.Com, Inc.
Bronze – Alibaba Group Holding Ltd.

Hong Kong SAR
Gold – Asiainfo Technologies Ltd.
Silver – BYD Electronic Company Ltd.

Indonesia
Gold – PT Telkom Indonesia (Persero) Tbk
Silver – PT DCI Indonesia Tbk
Bronze – PT Elang Mahkota Teknologi Tbk

Taiwan
Gold – Wistron Neweb Corporation
Silver – Sercomm Corporation
Bronze – Topco Scientific Co. Ltd.

Vietnam
Gold – Vinfast Joint Stock Company

— Best Telecommunications Company —

China
Gold – China Mobile Ltd.
Silver – China United Network Communications Group Co., Ltd.
Bronze – China Telecom Corporation, Ltd.

Hong Kong SAR
Gold – China United Network Communications Group Co., Ltd. (Hong Kong)
Silver – China Tower Corporation Ltd.

Indonesia
Gold – PT Telkom Indonesia (Persero) Tbk
Silver – PT XL Axiata Tbk
Bronze – PT Sarana Menara Nusantara Tbk

Philippines
Gold – Globe Telecom, Inc.
Silver – Converge ICT Solutions Inc.

Taiwan
Gold – Chunghwa Telecom Company, Ltd.
Silver – Far Eastone Telecommunications Co., Ltd.
Bronze – Taiwan Mobile Corporation Ltd.

— Best Utilities Company —

China
Gold – China Power International Development Ltd.
Silver – China Datang Corporation Ltd.

Hong Kong SAR
Gold – Tian Lun Gas Holdings Ltd.

India
Gold – Tata Power Company Ltd.

Indonesia
Gold – PT Jasa Marga (Persero) Tbk
Silver – PT Indonesia Kendaraaan Terminal Tbk
Bronze – PT Kencana Energi Lestari Tbk

Philippines
Gold – Manila Water Company, Inc.

Taiwan
Gold – Far Eastern New Century Corporation
 

¬ Haymarket Media Limited. All rights reserved.

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Asia must catch up on ESG investing

US President Joe Biden has rejected Republican plans to prevent American pension-fund managers from basing investment decisions on factors such as climate change, in the first veto of his presidency.

“I just signed this veto because the legislation passed by the Congress would put at risk the retirement savings of individuals across the country,” Biden said in a video posted on Twitter.

The bill cleared the US Congress, when the Senate voted 50-46 to adopt a measure to overturn a Labor Department rule making it easier for fund managers to consider environmental, social and corporate governance (ESG) factors for investments and shareholder rights decisions.

Meanwhile, financial firms in the UK and the European Union have “remained under significant pressure” to comply with ESG rules over the past six months, KPMG’s Regulatory Barometer recently revealed.

While there remain difficulties in the US in establishing ESG regulations versus the progress made in Europe, the two global regions are both heading toward greater standardization.

The regulatory push in the area of ESG is being driven by soaring demand by institutional and retail investors. 

ESG investments have become increasingly popular in the past decade as investors look for ways to generate decent returns while supporting companies that prioritize sustainable practices and social responsibility.

However, Asia, on almost all counts, lags behind the rest of the world in terms of demand for ESG investing.

In order to catch up, there’s a pressing need to stoke demand with greater, wider awareness about ESG investments and their importance in creating a sustainable future. 

Governments and companies need to work together, in a “joined-up” thinking approach, to promote the benefits of ESG investments and to educate the public about their positive impact.

Opportunities for investors

The key messaging that they must include is that ESG can provide significant opportunities for investors, companies, and for society by encouraging investing in long-term performance, reducing risk, driving positive change, increasing transparency, improving brand reputation, and attracting younger investors.

Governments across the region will also need to step up and develop regulations and standards that encourage companies to adopt sustainable practices. 

These should focus around reporting requirements and incentives for firms that prioritize ESG factors. 

Ideally, there should be a region-wide framework to provide the confidence and clarity that investors require. The lack of standardized ESG metrics and reporting frameworks across Asia makes it harder for investors to compare and assess the performance of different companies and funds in different jurisdictions.

Providers in Asia also need to increase the availability of investment opportunities that prioritize ESG factors. The limited range of ESG products available in some parts of Asia makes it difficult for investors to find suitable options.

Although North America and Europe are streets ahead of Asia in terms of ESG investing, more still needs to be done on a global scale to promote the profits-with-purpose concept.

It’s clear that governments alone cannot combat the worst effects of human-triggered climate change.

Governments are best positioned to develop, implement and manage policy, incentives, standards, metrics and regulations. And yes, they must also provide top-level funding. 

But because of the tens of trillions likely to be needed for disaster prevention and mitigation, there will remain a major funding gap if we rely solely on the public sector.

This is especially true as governments are still battling with the unprecedented financial fallout of the Covid pandemic, for which no country was prepared and which upended economies globally.

Therefore, it is essential to enable, unlock and mobilize private capital as a matter of urgency.

To do this, we need global cooperation among financial advisories, insurance firms, banks, wealth and asset managers, investment companies, fintech groups, banks and auditors, among others, to help unlock and mobilize the trillions of dollars of private finance that is urgently required. Without this, the level of funds required will simply not be there.

Climate change remains the most serious risk multiplier to our planet, to our communities, and to our way of life.

Failing to understand the magnitude of it now is going to have catastrophic, irreversible consequences later. Urgent private finance inflows are essential. 

Asia is home to some of the world’s most pressing environmental and social challenges, including climate change, air pollution, and inequality. By increasing demand for ESG investments, Asia can encourage companies to adopt more sustainable and socially responsible business practices, and help address these global challenges.

Nigel Green is founder and CEO of deVere Group. Follow him on Twitter @nigeljgreen.

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Huawei’s ERP software overcomes US sanctions

Chinese tech giant Huawei has announced the introduction of its own Enterprise Resource Planning (ERP) software, ending its dependence on America’s Oracle and making another move away from vulnerability to US sanctions.

On April 20, Huawei announced that it had “replaced the legacy ERP system” with its own MetaERP system “over which it has full control.” The legacy system was provided by US software company Oracle.

Oracle defines ERP as “a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations.”

It says: “A complete ERP suite also includes enterprise performance management, software that helps plan, budget, predict, and report on an organization’s financial results.”

Huawei refers to ERP as “the most critical enterprise management IT system.” It was therefore critical when Oracle was forced to stop providing software upgrades and technical services to Huawei after the Bureau of Industry and Security of the US Department of Commerce added Huawei to its Entity List in May 2019.

Tao Jingwen, president of Huawei’s Quality, Business Process & IT Management Department, said “We were cut off from our old ERP system and other core operation and management systems more than three years ago. Since then, we have not only been able to build our own MetaERP, but also manage the switch and prove its capabilities. Today we are proud to announce that we have broken through the blockade. We have survived!”

Huawei’s announcement included this statement: “Today, Huawei hosted the MetaERP Award Ceremony to recognize the individuals and teams who made critical contributions to this project. The event titled ‘Heroes Fighting to Cross the Dadu River’ was held at the company’s Xi Liu Bei Po Village Campus in Dongguan, China.”

Huawei has a new homegrown ERP system. Image: Twitter

In addition to thousands of its own employees, Chinese partner companies including Qi An Xin Technology, Kingdee International Software and Kingsoft contributed to the project.

Qi An Jin is one of China’s largest cybersecurity companies. Kingdee is one of China’s larger providers of ERP software. Kingsoft provides office, security and other software, and cloud computing services.

In 1935, the Red Army of the Chinese Communist Party defeated Nationalist forces in the Battle of Luding Bridge, crossing the Dadu River in western Sichuan on the Long March.

In the words of Tao Jingwen, “Not having access to ERP became Huawei’s ‘Dadu River’ that blocked our way forward and threatened our very existence.”

According to Huawei: “The old ERP system was the core system underpinning Huawei’s enterprise operations and rapid development for more than 20 years. It supported Huawei’s efficient business operations, which generate hundreds of billions of dollars every year, across more than 170 countries and regions worldwide.”

In 2016, Huawei and Oracle agreed to deepen their collaboration using Huawei’s KunLun Mission Critical Server and Oracle’s database platform technologies.

In 2017, they announced a “Power IoT Ecosystem Partnership” in advanced metering infrastructure and smart grid software. After that, however, the relationship unraveled.

In 2019, Oracle laid off around 900 of the 1,600 workers at its R&D Center in China, most of them researchers and Huawei soon thereafter announced its own database management software called GaussDB.

Then, with the onset of US government sanctions, Huawei “decided to develop a completely self-controlled MetaERP system to replace the old ERP system.”

“MetaERP,” according to Huawei, “currently handles 100% of Huawei’s business scenarios and 80% of its business volume. MetaERP has already passed the tests of monthly, quarterly, and yearly settlements, while ensuring zero faults, zero delays, and zero accounting adjustments.”

ERP in China

China’s commercial ERP market should grow by about 15% this year to $2.2 billion, in the estimation of Chinese market research and consulting firm Tenba Group.

The global ERP market, according to Tenba Group, is forecast to grow by 11% to $55 billion, with China accounting for only 4% of the total. Given the size and sophistication of the Chinese economy, China should continue to outgrow the global market for many years.

Two companies, SAP and Oracle, have more than half of the ERP business at large Chinese companies, according to Tenba, while the top seven suppliers have almost 90%. These companies are:

  1. SAP (33%) – Germany
  2. Oracle (20%) – USA
  3. Yonyou (14%) – China
  4. IBM (8%) – USA
  5. Kingdee (6%) – China
  6. Talosoft (5%) – China
  7. Infor (3%) – USA

Most Chinese small and medium-sized enterprises (SMEs) use domestic ERP providers, but SAP has about 15% and Oracle 6% of the market.

The manufacturing and communications industries are the largest users of ERP in China, followed by construction, utilities and transportation.

SAP has been in China for 30 years. It now has more than 6,500 employees, 100 official partners, 20,000 certified consultants and about 16,000 customers in the country.

In March, the president of SAP Greater China told Chinese state news agency Xinhua that “Chinese companies are going fully digital, connected and environment-friendly, which opens a window of opportunity for SAP in China.”

“As a multinational company founded in Germany, SAP’s business development in China has benefited from China’s deepening reform and opening up and rapid economic development,” he said. Indeed, the market share numbers bear this out.

Huawei now has its own ERP software and SAP is the largest provider of ERP software in China, with Oracle running a distant second. That makes two own goals for the US government – a result perhaps only to be expected when government trade strategy prioritizes vindictiveness over profit motive.

Follow this writer on Twitter: @ScottFo83517667

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