Salary grows 10 percent last year for city staff
March 30th, 2007SHANGHAI employees earned 29,569 yuan (US$3,820) on average last year, growing 10.2 percent from a year earlier, Oriental Morning Post reported today, citing the local statistics bureau.
Civil servants, employees of government institutes and company workers were all covered in the report, said Ye Weihong, an official of the Shanghai Labor and Social Security Bureau.
The before-tax income consists of salary, bonuses and subsidies, the report said.
The city is expected to raise the subsidy for elders and women as well as social security fund standard because these standards are based on the city's average salary.
The city's average salary has kept a growth of 10 percent in recent years, with yearly income reaching 26,820 yuan in 2005 and 24,396 yuan in 2004, the report said.
Best employers
March 30th, 2007THE 2008 China's Top Employer selection program in the Shanghai Region was launched in the city yesterday.
Sponsored by the Netherlands-based Corporate Research Foundation, the annual selection program will send researchers to evaluate companies on the basis of compensation and benefits, working condition, training, promotion and career development, corporate culture and innovation to work out a list of the best employers in the city. Applications will be due by September and the result will be announced in November.
Citigroup to Add Jobs in Asia; Cuts Loom Elsewhere
March 30th, 2007March 29 (Bloomberg) -- Citigroup Inc. Chief Executive Officer Charles Prince may add more than 10,000 employees in Asia through acquisitions at the same time he looks to reduce annual expenses by at least $1 billion.
Citigroup plans to buy Bank of Overseas Chinese in Taiwan and Tokyo-based brokerage Nikko Cordial Corp. The biggest U.S. bank also is hiring about 1,000 people this year to increase its corporate, consumer and investment banking businesses in China, Prince said.
``When we expand through acquisition, people come along with that,'' Prince said today at a press briefing in Beijing. ``We get lots of great people through transactions.''
Prince is under pressure from shareholders because Citigroup's stock is trailing competitors and expenses increased twice as fast as revenue last year. Prince named Robert Druskin chief operating officer in December and asked him to identify ways to cut costs by the time the New York-based company reports first-quarter earnings next month.
Citigroup generates about 20 percent of its profit from Asia, compared with 41 percent at London-based HSBC Holdings Plc. The 57-year-old Prince has said he wants to generate more than 60 percent of earnings from outside the U.S., up from 45 percent last year.
Prince didn't discuss details of the company's acquisition plans for Taiwan today.
``We have very strong growth throughout the international space, both in the emerging markets and in selected developed markets,'' Prince said. ``Expansion in Japan should be very good,'' he said, referring to the proposed $13.4 billion purchase of Tokyo-based Nikko Cordial.
Trailing Peers
Shares of Citigroup trailed Bank of America Corp. and JPMorgan Chase & Co. for the past five years as the company's profit growth lagged behind its two biggest U.S. rivals. Citigroup's stock climbed almost 7 percent during the past 12 months, compared with Bank of America's 10.4 percent advance and JPMorgan's 15.1 percent gain. Shares of Citigroup are down 8.5 percent this year. The stock was up 55 cents at $51.51 at 10 a.m. New York time.
Citigroup will cut more than $1 billion in costs this year to boost profit growth and the stock price, said a person with direct knowledge of the matter in January. As part of the plan, the company won't replace employees when they leave, said Manuel Medina-Mora, Latin America chairman and a member of the company's management committee, in an interview last week in Mexico.
Buyout Attempts
Prince then said on March 26 that Citigroup doesn't have a ``formal process by which we simply don't replace people who are leaving. You have to be more flexible.'' Prince has declined to comment on a report in the Wall Street Journal that the company will eliminate 15,000 jobs, or almost 5 percent of its workforce.
Citigroup's operating expenses jumped 15 percent to $52 billion last year, while net revenue rose 7 percent to $89.6 billion.
The company is pursuing the takeover of Nikko Cordial, Japan's third-largest brokerage, to add about 12,000 employees, more than 100 branches and 30 trillion yen ($256 billion) of clients' assets in Asia's biggest economy. The takeover is opposed by David Herro, chief investment officer at Chicago-based Harris Associates LP and one of Nikko's biggest shareholders, who says the offer is too low.
Citigroup is close to buying Taiwan's Bank of Overseas Chinese, the country's regulator said in a March 13 interview. Bank of Overseas employs about 2,000 people, data compiled by Bloomberg show. The purchase would give Citigroup 55 branches on the island, where the government won't allow any new outlets to be opened as it encourages mergers in the industry.
`Unparalleled Promise'
Taiwan's economy grew 4.6 percent last year, while China expanded 10.7 percent, the fastest among the world's major economies. Citigroup has about 3,000 people working in China and plans to increase that figure by about a third.
``China stands out as a country of unparalleled promise,'' Prince said. Citigroup will continue to build ```our investment- banking business in China,'' he said.
Zhao Jing joined last year from Morgan Stanley to head the China investment-banking team. The firm hired Eugene Qian from Deutsche Bank AG this week after recruiting Zhang Wendong from UBS AG in January.
Citigroup will continue to invest in its partners in the country, Prince said. The bank led a group in December that bought 86 percent of Guangdong Development Bank. Citigroup also plans to increase its stake in Shanghai Pudong Development Bank Co. to 19.9 percent from 3.78 percent.
Chinese Home Appliance Companies Promote "Green Manufacturing"
March 29th, 2007Chinese home appliance manufacturer Changhong has announced in Beijing the launch of the 2007 China Green Manufacturing Enterprise Manifesto.
Along with many other electrical manufacturers, Changhong promises to abide by the relevant state laws and regulations and promote the green manufacturing causes in China.
Yang Dan, a deputy chief engineer from Changhong, announced the manifesto on behalf of Changhong and about 20 Chinese electrical companies at the 1st China Green Manufacture Annual Meeting. The participating enterprises made commitments at the meeting to carry out the E-product Pollution Control and Management Measure issued on March 1 this year and implement the relevant provisions to stick environmentally-friendly signs on their products made after March 1.
China's new RoHS measure requires that all electronic companies mark the names of harmful substances and their quantity on certain types of electrical products.
Adea completes acquisition of CVR Consulting
March 28th, 2007BANGALORE: Adea, a global provider of information technology solutions with regional headquarters in Dallas, U.S., London and Bangalore, has completed a major acquisition in the U.S. and launched operations in China. Adea reported FY 2006 revenues of $200 million, a four-fold growth since the previous year.
Adea Chairman, Abid Abedi, said CVR Consulting, a SAP services provider to the U.S. Government agencies, was acquired for $14 million and helped Adea grow its presence in the public sector. In addition, SAP services will be offered to European clients.
Most of CVR's senior consultants, familiar with the U.S. Government are likely to be retained.
"After a detailed analysis of the IT market in China, we selected the base there considering the access to a talent pool with low attrition levels. China has some excellent technical schools and delivery centre there is expected to start operations in the second quarter of 2007. We expect a $55-60 million revenues from there and will invest close to $30 million to start with," said Adea's CEO, Shouvik Bhattacharya. Together, the expansion would help the company cater to all needs of clients in IT-related services, such as ERP, SAP and Oracle and talent acquisition through a BPO division focused on IT recruiting for client companies.
Mr. Abedi announced that a four-member team from MIT's Sloan School of Management worked on the global strategy and planning for Adea and the strategy team had students from several countries including India, China, the U.S. and the U.K.
Google Targets Fake Sales Agents In China
March 27th, 2007Song Zhongjie, channel supervisor of Google China, has arrived in Nanjing and initiated the company's battle against fake agents.
There are more than 300 Internet companies in Nanjing and local media report that over one half of them claim themselves to be agents of Google, but Song says they are mostly fake agents. Song says that Google has a total of 22 agents in China, but only one of them is located in Nanjing.
At present, the Nanjing market is disorderly as a result of these fake agents and many companies have been cheated by the fake agents who provide similar services to that of Google. Often the agents will claim to be able to be able to place advertisements on Google's search engine, but they will instead take a client's money and not provide any services.