Deloitte's news in the Boao Forum for Asia (BFA) Annual Conference 2017

Professional services firms have ample room for growth

Deloitte China Deputy CEO and Tax & Business Advisory Services Managing Partner Vivian Jiang said there is ample room for growth among professional services firms in China, especially in the advisory services space, as they continue to play the role to assist the globalization and transformational journey of Chinese companies. She was interviewed by Economic Daily and Hexun.com at the Boao Forum for Asia (BFA) Annual Conference.

Taking Deloitte, the largest professional services firm in the world, as an example, the firm's advisory services are increasingly playing a more significant role in terms of revenue contribution, with Chinese companies looking for strategic counsel in their quest for business and digital transformation. Yet, professional services firms are faced with the challenges of finding adequate talent with deep expertise.

Commenting on the macro-economy, she said global economic recovery comes along with a number of uncertainties, adding that senior executives – who participated in the Deloitte moderated roundtables for private companies and multinational companies – remain positive about the investment environment, and growth in China. She hopes that the government will opt for stable and quality growth, continue to take proper measure to cut taxes and fee, and minimize the compliance cost. These measures will help companies to remain competitive in the marketplace, while enabling them to promote innovation.

Deloitte China’s leaders were interviewed by China Global Television Network (CGTN) at the Boao Forum for Asia (BFA) Annual Conference about free trade and tax collaboration in the region.

On 23 March, Deloitte China Deputy CEO and Tax & Business Advisory Services Managing Partner Vivian Jiang explained the importance of regional collaboration to ensure that companies are paying fair taxes and with greater transparency. She said the central government’s plan to cut taxes will enable companies to preserve their assets, but it should also take measures to help companies minimize their tax compliance costs. When it comes to women leadership, she said it is important for women to be confident and break through the glass ceiling themselves. Only with confidence, women can make an impact that matters in their leadership roles.

Chinese companies need a long term "Belt and Road" business plan

In the course of their investment in the “Belt and Road” countries, Chinese companies need to take a medium to long-term approach when developing their business plans and managing different risk factors, according to Norman Sze, Deloitte China Belt and Road Initiative Leader. Companies should also strengthen their communication with local governments and regulatory authorities.

He shared his insights with China Securities Journal at the Boao Forum for Asia (BFA) Annual Conference on 24 March. Norman said there are 65 countries along the Belt and Road, each of which has distinct legal system and market condition, as well as different level of economic maturity. Companies should adopt and continue to refine their investment strategy in order to align with their own business needs. It is also important for them to raise capital from different sources and actively identify and manage risks. At the same time, they should focus on recruiting and developing talent with global experience. When it comes to post-merger integration, companies should heighten the communication with their local teams and identify the right corporate culture which is in sync with the local market condition and their development needs.

Because of their distinct nature, Norman said financial institutions are faced with the most significant market-related and regulatory risks when they invest in offshore markets. In addition to proactively building closer connection with local regulatory bodies, they should also gain better understanding of the local regulatory requirements.

On 22 March, the China’s Firm Chief Economist & Partner Sitao Xu was interviewed by China Global Television Network (CGTN), where he said China can significantly contribute to free trade and global integration. For instance, China can help promote the Regional Comprehensive Economic Partnership (RCEP). In addition, China can also adopt a more open-minded attitude towards Trans-Pacific Partnership (TPP). When it comes to China’s economic outlook, he said China’s GDP growth will be around 6.2-6.3%, which will keep inflation target within 3% this year.