HONG KONG, June 18, 2012 /PRNewswire-Asia/ -- China's Chief Financial Officers (CFOs) have high on their agenda the ability to cope with regulatory and policy changes, as well as the global economic outlook which they regard with some scepticism.
Conducted in March 2012, the Deloitte survey gauged the opinions of China's CFOs over a number of areas: their companies' perception on the economy and industry challenges, business priorities and potential risks of the companies, and priorities and challenges of their finance organizations. Seventy nine percent of respondents are from companies, which have an annual revenue of over RMB 1 billion.
"Survey results indicate growing concerns over the prolonged issues in Europe. CFOs have expressed concerns about the negative impact of weakening export demand despite efforts by the government to reduce the current reliance on foreign demand," said Mr. Chris Lu, CEO, Deloitte China.
China has experienced annual GDP growth of over 8 percent since 2002. However, the Chinese government has cut its GDP target for 2012 to 7.5%. Deloitte's survey found the majority of respondents (72 percent) are pessimistic about the U.S. and European economies, and 70 percent also anticipate an economic slowdown in China. Over half the CFOs (52 percent) were concerned about capital cost/availability, possibly reflecting funding difficulties in the current environment.
The survey also revealed that CFOs appeared to be aware of the challenge from policy/ regulation, which was cited by almost half (46 percent) as one of their top three industry challenges in China. In addition, over one third of CFOs (37 percent) also cited financial and corporate governance policies, (accounting, reporting and control), among the top three challenges faced by their companies.
"The survey results reflect recognition by China CFOs of the importance of adapting efficiently to new regulations and policies when doing business in China. The surveyed CFOs are being prompted by their CEOs to give serious focus to strategy development and execution. Economic uncertainty and regulatory challenges seem to have elevated business strategy to a higher priority over risk and performance management," said Mr. Danny Lau, Leader, Deloitte China CFO Program.
There is a divergence of opinion on whether the recent economic turmoil will affect corporate earnings. Given the prevailing environment, however, many CFOs mentioned revenue growth/ preservation as their business focus for the next 12 months and the challenge of maintaining revenue growth in both new and existing markets, regardless of the size and industry categories of their companies. Against this backdrop, CFOs also appreciated the importance of adequate talent support to achieve revenue growth. In China, unique challenges include talent recruitment, skills availability, morale and human capital costs.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/cn/en/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte's approximately 182,000 professionals are committed to becoming the standard of excellence.
About Deloitte in Greater China
We are one of the leading professional services providers with 21 offices in Beijing, Hong Kong SAR, Shanghai, Taipei, Chongqing, Dalian, Guangzhou, Hangzhou, Harbin, Hsinchu, Jinan, Kaohsiung, Macau SAR, Nanjing, Shenzhen, Suzhou, Taichung, Tainan, Tianjin, Wuhan and Xiamen in Greater China. We have nearly 13,500 people working on a collaborative basis to serve clients, subject to local applicable laws.
About Deloitte China
In the Chinese Mainland, Hong Kong and Macau, services are provided by Deloitte Touche Tohmatsu, its affiliates, including Deloitte Touche Tohmatsu CPA Limited, and their respective subsidiaries and affiliates. Deloitte Touche Tohmatsu is a member firm of Deloitte Touche Tohmatsu Limited (DTTL).
As early as 1917, we opened an office in Shanghai. Backed by our global network, we deliver a full range of audit, tax, consulting and financial advisory services to national, multinational and growth enterprise clients in China.
We have considerable experience in China and have been a significant contributor to the development of China's accounting standards, taxation system and local professional accountants. We provide services to around one-third of all companies listed on the Stock Exchange of Hong Kong.
Contacts:
| Wilfred Lee | Bonita Chan |
| Senior Manager | Assistant PR Manager |
| Tel: +852-2852-1243 | Tel: +852-2852-1679 |
| Fax: +852-2541-3726 | Fax: +852-2541-3726 |
| Email: wilflee@deloitte.com.hk | Email: bonchan@deloitte.com.hk |
