Archives March 2013

China launches its own ‘best job in the world’

A Chinese city is searching for a foreign traveller to become a “modern Marco Polo”, with a 40,000 euro ($A50,893) salary on offer to the winner.

Hangzhou in eastern China, renowned for its canals and bridges, was described as the “most beautiful and elegant city in the world” by the Venetian traveller, whose 13th-century journal was one of the first detailed accounts of China written by a European.

Now the city is “calling people around the world to follow Marco Polo’s steps”, said Chen Li, of Hangzhou’s tourism commission.

The promotion is akin to Australia’s “best jobs in the world” campaigns, the first of which required the winner to live on a tropical island for six months.

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The new Marco Polo will be recruited via Facebook – which is banned in China – and will undergo intensive training before being flown to the city for a 15-day trip, the tourism commission said in a media release.

Duties include making a short video about Hangzhou and promoting the city online. Both men and women are eligible, it said.

“To be a modern Marco Polo is a very interesting job, it will maybe change their life,” Chen said. “They may find inner peace, like Kung Fu Panda.”

The Travels of Marco Polo, composed in 1298, described a journey across Asia through realms of pygmies, exotic plants and cannibals.

The book had an enormous impact on European perceptions of the continent, but modern historians have questioned the veracity of Polo’s account, and some query whether he reached China at all.

China was the world’s third most visited country in 2011, behind the United States and France, according to the United Nations World Tourism Organisation, with 57.6 million international tourism arrivals.

Meanwhile, more than a quarter of a million entries have been submitted for Australia’s ”Best Jobs in the World” promotion in just a week.

Tourism Australia is offering their pick of the best working holiday jobs to showcase the country.

Roles include being a ”funster” in NSW and an outback adventurer in Northern Territory.

Winners will be paid $100,000 each for a six-month contract starting in June.

In the seven days since the launch, Tourism Australia has received 275,000 applications from 150,000 people in 196 countries.

Applicants can apply for more than one job.

About 38,000 entries came from the US, 33,000 from France, 32,000 from the UK and 30,000 from Italy.

The most popular jobs are South Australia’s wildlife caretaker, NSW’s chief funster and Queensland’s park ranger.

The aim of the competition is to boost the number of working holiday tourists visiting Australia.

About 1.6 million people under the age of 30 travel to Australia each year, making up just over a quarter of all tourists and contributing about $12 billion a year to the economy.

Entries close 9am (AEDT) on April 10 and winners will be announced on June 21.

Visit www.australia.com/bestjobs to enter.

AUSTRALIA’S ‘BEST JOBS IN THE WORLD’

Wildlife caretaker, SA – wake up the kangaroos, swim with dolphins and sea lions, assist with conservation projects
Park ranger, Qld – check water temps, protect and promote native plants and animals, walk in the rainforest, visit waterfalls

Chief funster, NSW – promote food, lifestyle and sports events across the state, work behind the scenes of some of Sydney’s biggest festivals

Lifestyle photographer, Melbourne – create city and country photo shoots, meet local identities, designers and artists, explore the city’s hidden secrets, share trends

Outback adventurer, NT – meet the locals, journey through the outback, sleep under the stars in a bush camp, taste traditional bush foods

Taste master, WA – eat your way around the state, forage for the finest produce, uncover the best bars and restaurants.

Q&A on China’s Monetary Policy and Financial Reform

The People’s Bank of China (PBOC) announced on March 16 that it had re-appointed Zhou Xiaochuan as the chief of China’s central bank, making Zhou the longest-serving central bank chief since the establishment of the People’s Republic of China. The re-appointment of Zhou, who has held the position since 2002, signals the country’s bid to ensure policy continuity amid current global uncertainties, while deepening the country’s on-going financial reform.

Before the reassignment, Zhou and three other deputy governors of the PBOC attended a press conference regarding China’s monetary policy and financial reform on March 13. Selected questions and answers from the press conference can be found below.

Q: What kind of monetary policy will China’s central bank adopt?

A: China’s monetary policy mainly seeks to accomplish the following four objectives:

* Keeping low inflation
* Facilitating economic growth
* Encouraging employment
* Balancing international payments
* Where the four objectives are unable to be accomplished simultaneously, the central bank needs to adopt a monetary policy that can draw a balance among the four purposes.

In the Government Work Report presented by Premier Wen Jiabao, he suggests the country set its 2013 GDP growth at 7.5 percent, and the target for inflation (as measured by the CPI) at 3.5 percent. Meanwhile, the broad money supply (M2), which covers cash in circulation and all deposits, is suggested to grow by 13 percent.

The proposed growth of M2 is lower than that of last year, indicating that the monetary policy will stay prudent and neutral, and meanwhile, the government will put more emphasis on keeping consumer prices stable.

Q: Will China’s M2 growth present an inflation risk?

A: Countries with high savings rates and a heavy reliance on indirect financing usually have high M2 growth, which is the case with China. However, the high M2 to GDP ratio will not necessarily create an inflation threat. Japan, for instance, has an even higher ratio than China, yet still suffers from deflation rather than inflation.

For the central bank, stabilizing consumer prices is its first priority, the M2 figures will not necessarily put consumer price stability in jeopardy. If the growth of M2 can be controlled at a reasonable level, it won’t lead to sudden price hikes.

Q: Will the central bank support Taiwan to become an offshore RMB market?

A: The People’s Bank of China and the currency administration institution of Taiwan signed the Cross-Straits Cooperation Memorandum in Currency Settlement on August 31 last year. According to the Memorandum, financial institutions on both sides could undertake currency settlement through a correspondent bank or a clearing bank. The two sides may also discuss a currency swap agreement if cross-Strait trade demands a higher level of financial cooperation.

However, whether Taiwan will become an offshore RMB center needs to be decided by the market. Some important financial centers might become offshore RMB trading markets in the future as a result of market demands and competition.

Q: Will the central government provide a better environment for the opening of capital accounts? Are there going to be any adjustments on the opening schedule?

A: The Global Financial Crisis has created a special opportunity for the rapid growth of the cross-border usage of RMB in trade and investment, which is mainly due to a confidence crisis with the world’s major currencies, and closer regional cooperation between China and other economic entities.

With the development of cross-border usage of RMB, there will be greater demand for the exchangeability of RMB under capital accounts. However, making the RMB convertible under capital accounts is quite complicated. China has been pursuing the free exchange of RMB since 1993. Currently, the RMB has become convertible under current accounts, and its convertibility under capital accounts will be promoted step by step.

It is also important to notice that the convertibility of RMB under capital accounts will not only help promote RMB internationalization, but will also boost the development of an open-market economy in the country and strengthen confidence of domestic and foreign investors in the Chinese currency.

Investing in China worth the time, risk

Burton Malkiel, author of the classic investment book A Random Walk Down Wall Street (W.W. Norton), long has been a proponent of investing in China.

“The transformation of China is the economic miracle of the twenty-first century,” Malkiel says in his 2008 book, From Wall Street to the Great Wall (W.W. Norton).

“The pace of growth is so rapid that it takes less than a year for China to build a new city equivalent to the size of Houston. China is now central to the world commerce; and even if its growth rate slows, it will be the largest economy in the world by the 2020s, as measured in terms of purchasing power.”

That’s a mighty strong statement from the Princeton University professor. There may be good reason for his love of China. Malkiel is chief investment officer for AlphaShares LLC, a Walnut Creek, Calif., investment firm dedicated to providing investors with strategies and products to participate in China’s fast-growing economy.

Nevertheless, don’t bet the ranch on Chinese stocks and bonds. The region is riddled with political foreign currency and market risks because Chinese stocks are thinly traded. In addition, there are concerns about accurate accounting statements from both private and government-run Chinese companies. An investment in China requires patience over the long term.

Lately, China’s growth has been weakening. Chinese stocks were down around 1 percent this year, but they lost 50 percent in 2008, according to Morningstar Inc., Chicago. If you had bought and held Chinese stocks over the past 15 years, your investment would have grown at a 7.3 percent annual rate.

“Chinese (stocks) had a rough two years,” says Morningstar analyst Pat Oey. “China is facing a new normal: weak external demand for exports and slowing infrastructure spending.”

Good time to buy?

“We find the growth of domestic consumption to be very compelling,” says Greg Walker, J.P. Morgan Private Bank global investment specialist in Palm Beach. “It’s very hard to buy Chinese (stocks) and not get exposure to the mature government-owned industries, like banks, energy companies and insurance companies.”

Plus, Walker says, “there are a number of markets and economies in the Asian Pacific rim that benefit from China’s growth.” Singapore, Taiwan, Korea and Malaysia, he says, provide opportunities. Walker expects better earnings growth of around 10 percent in China this year.

Malkiel, in his book, suggests how much to invest in Chinese investments.

He advises conservative investors to keep about 5 percent to 10 percent for their total holdings in Chinese investments. The more venturesome should have between 10 percent and 20 percent.

The best way to invest in China, Malkiel says, is through exchange-traded funds. Exchange-traded funds generally are low cost, although you’ll often pay a brokerage commission to trade them. You also can hedge your bets with short sales.

Malkiel, whose company licenses exchange-traded-fund indexes, has suggested that half of your Chinese stock holdings be invested in China company shares traded in Hong Kong or New York. The other half should be in China’s major trading partners, excluding the United States. About 10 percent of this half of your investments should be in commodities and gold — the favorite savings vehicle in China.

Sales and marketing jobs in demand

The Chinese central government’s call to boost domestic consumption has helped to make sales and marketing positions hot in the job market, according to Kelly Services’ Salary Guide Greater China 2013 report released in late February.

Although tense competition in the Chinese market has restricted growth of many organizations, the report found that workers who remain in sales and marketing positions can expect to receive a 5 to 10 percent salary increase in 2013. Those changing jobs can expect to receive a 20 to 30 percent salary increase.

In the retail sector, sales, marketing, merchandising, store management, and operations positions remain in demand, although some headcounts were frozen in the first quarter of this year.

The human resources sector is equally promising. Top HR candidates with proven experience across all disciplines are in demand. Candidates who change positions can expect to receive a 20 to 30 percent increase in salary while the average increase for candidates remaining with their firms is over 10 percent.

Meanwhile, positive growth trends of the US automotive industry will be a boon for the Chinese market, which is expected to grow at a steady 8 to 10 percent clip this year. Top candidates will be needed in the industry in R&D positions, which are important for localizing manufacturing and product development.

While some information technology companies’ hiring plans will be frozen in 2013 due to the economic downturn, the Chinese IT industry is nevertheless expected to face a shortage of 2 to 5 million workers in the next 10 years. Positions pertaining to the 3G platform, cellphone operating systems and e-commerce are expected to remain in high demand.

“We are happy to report that in spite of some concerns, we are not seeing any significant slowdown in the China labor market,” said Nick Lesser, general manager of Professional & Technical Division at Kelly Services, China Operations.

“In fact, we are finding that in addition to steady demand for resources in tier-one cities such as Beijing, Shanghai and Guangzhou, clients are expressing increased interest in expanding their operations all around China,” Lesser said.

“The salary ranges in our guide are based on actual transactions between employers and employees, and represent an accurate reflection of the marketplace,” he said. “Market-driven salaries are of course crucial, but only by creating a meaningful employer-of-choice culture is it possible to attract and retain talented staff.”

Pacific Online Limited Announces Full Year 2012 Earnings Results

HONG KONG, March 26, 2013 /PRNewswire/ — Pacific Online Ltd. (HKSE: 543) (“Pacific Online,” the “Company,” or the “Group”), a leading internet content provider in China, today announced its financial results for the full year ended December 31, 2012. The Group will host a conference call to discuss these results at 9:00AM Hong Kong time on Wednesday, March 27, 2013. Dial-in details are provided at the bottom of this release.

Year Ended December 31, 2012 Financial Highlights
* Total revenues increased 11.8% year-over-year to RMB715.6 million
* Net profit increased 3.3% year-over-year to RMB 236.5 million
* Proposed final cash dividend of RMB15.26 cents per ordinary share

“For the full year 2012, we are pleased to report an 11.8% increase in revenues and a rise of 3.3% in net profit,” stated Mr. Waiyan Lam , Chairman and Chief Executive Officer of Pacific Online Limited. “These results demonstrate the cautious, yet profitable approach we have taken to grow our business, despite the uncertain macroeconomic conditions in China, pressure from competition, and increases in operating costs.”

“PCauto, our largest vertical portal in terms of revenue, delivered revenue growth of 17.3% in 2012. The portal benefitted from the across the board increases seen in the advertising budgets of automobile manufacturers due to intensified competition in the retail market. However, we also saw increased competition from both vertical and diversified portals. Our auto business was temporarily affected during the second half of the year as a result of the dispute between the Chinese and Japanese governments. This caused a brief decrease in marketing spending by some manufacturers, though the impact was temporary as advertiser spending quickly returned to pre-dispute levels. To successfully navigate through these challenges, we worked to strengthen the quality of our content, which helped us increase user stickiness and brand equity, and remain relevant for our users.”

“PConline, our IT portal, continued its stable development in 2012 thanks in part to relatively steady advertising spending in the IT sector amid intensified competition. The political dispute between China and Japan last year also had a minor temporary impact on our IT business. We were able to marginally expand by shifting our advertising product mix to adapt to the market. With more spending coming from mobile device manufacturers and other similar areas, we will continue to devote resources to this important segment as demand for consumer electronic devices in China continues to expand in line with the rising middle class.”

“Revenue from our female-focused PClady portal increased 13.9% in 2012. As more and more women move online to research and purchase luxury and brand name products, we are devoting resources to this area in order to attract traffic from users who start their shopping experience with our portal. In addition, we have re-aligned our editorial team in order to strengthen our content, developed a variety of brand-building opportunities, and strengthened cooperation with e-commerce companies both online and offline.”

“Our other vertical portals, including PCgames, PCbaby, and PChouse, continued to improve content and attract users during 2012 as they gradually build scale. While these brands remain relatively small, their user bases remain robust and continue to grow as new features and content are added. We expect that the revenue contribution from these portals will increase in the coming years.”

“Last year, we continued to invest in the development of mobile applications for each of our vertical portals. We also launched our third free online magazine for PClady on Apple’s iPad which mirrors and expands on the content that is already available on the portal. Our online magazines generated a significant buzz in the market last year and garnered positive feedback. In particular, our PChouse magazine was named one of the Products of the Year by Apple’s Mac App store in China. With the increased viewership that we attracted in 2012 along with continued development of our brand, we believe we are bettered positioned to capture the rapidly growing mobile internet market in 2013.”

“In anticipation of the changing competitive environment, we believe that we have taken the right measures to address current and potential challenges. We are committed to our long-term strategy and will continue to invest more on marketing to increase our brand value, strengthen our management team, and improve the quality of our content to increase user stickiness. This will help to ensure the success of Pacific Online Limited over the long-term.”

Proposed Final Dividend

The Board has recommended the payment of a final cash dividend of RMB15.26 cents per ordinary share for the year ended December 31, 2012 (2011: RMB14.78 cents), subject to the shareholders’ approval at the Company’s forthcoming annual general meeting to be held on Monday, May 20, 2013. The Proposed Final Dividend will be paid in cash on June 6, 2013 to shareholders whose names appear on the register of members of the Company at the close of business on May 29, 2013.

Full year 2012 Financial Results

Revenue

Revenue increased 11.8% from RMB640.1 million for the year ended December 31, 2011 to RMB715.6 million for the year ended December 31, 2012.

In 2012, the Ministry of Finance in China launched a pilot program to gradually transition the taxation system from a business tax (“BT”) to a value- added tax (“VAT”). Pursuant to this program, the Group’s advertising revenue in Shanghai, Beijing and Guangzhou is now fully subject to VAT. For purposes of comparison, our reported revenue growth for 2012 would have been 15.8% had the BT remained applicable to our business during the year.

Revenue for PCauto, the Group’s automobile portal, increased 17.3% from RMB293.9 million in 2011 to RMB344.6 million in 2012. According to statistics from the China Passenger Car Association, passenger car sales in China grew 6.8 percent to 14.68 million vehicles in 2012. PCauto was able to outperform car industry growth because automobile advertisers continued to allocate more of their marketing budgets to digital media.

Revenue for PConline, the Group’s IT and consumer electronics portal, increased 3.3% from RMB257.5 million in 2011 to RMB266.1 million in 2012. The increase in revenue from PConline was mainly due to the overall increase in advertising spending from IT sector customers, including smartphone and tablet manufacturers.

Revenue for PClady, the Group’s lady and fashion portal, increased 13.9% from RMB51.8 million in 2011 to RMB59.0 million in 2012. The rise in revenue mainly reflected increased demand in the women’s segment, especially for luxury and fashion goods.

Revenue for other operations, including the PCgames, PCbaby and PChouse portals, increased by 24.3% from RMB37.0 million in 2011 to RMB45.9 million in 2012. Revenue from these segments increased significantly due to advertisers increasingly look to the internet as an effective platform to promote and market their products and brands.

As a percentage of total revenue, PCauto accounted for 45.9% in 2011 and 48.2% in 2012, whereas PConline accounted for 40.2% in 2011 and 37.2% in 2012, PClady accounted for 8.1% in 2011 and 8.2% in 2012 and other operations accounted for 5.8% in 2011 and 6.4% in 2012. The Group continued to diversify its revenue base across the different industry segments.

Cost of Revenue

Cost of revenue increased 5.0% from RMB197.9 million in 2011 to RMB207.7 million in 2012. The gross profit margin was 69.1% in 2011 and 71.0% in 2012.

The slight increase in cost of revenue was due to increases in personnel related expenses, higher sales commissions and increases in branch operating expenses during the year. This was partially offset by lower business tax charges through the implementation of the business tax/value-added tax reform policy, fully applied to us in late 2012.

Selling and Marketing Costs

Selling and marketing costs increased 32.5% from RMB86.3 million in 2011 to RMB114.4 million in 2012. The increase was mainly due to increases in staff costs and marketing expenses.

Administrative Expenses

Administrative expenses increased by 37.6% from RMB48.7 million in 2011 to RMB67.1 million in 2012. The increase in administrative expenses was primarily due to increases in hiring and salary, traveling expenses and higher provisions for the impairment of trade receivables during the full year 2012.

Product Development Expenses

Product development expenses increased by 38.3% from RMB28.7 million in 2011 to RMB39.7 million in 2012. The increase was primarily due to greater staff recruitment in research and development.

Operating Profit before Share-based Compensation Expenses (non-GAAP)

Operating profit before share-based compensation expenses (non-GAAP) was RMB297.9 million in 2012, representing 3.0% increase from RMB289.2 million in 2011.

Finance Income and Cost

Net finance income was RMB5.3 million in 2011 and RMB4.7 million in 2012. The decrease in net finance income was mainly due to lower interest income on bank deposits.

Income Tax Expense

Income tax expenses increased 2.6% from RMB58.5 million in 2011 to RMB60.0 million in 2012. The increase in income tax expense was primarily due to a modest increase in operating profit during the year.

Net Profit

Net profit increased 3.3% from RMB228.9 million in 2011 to RMB236.5 million in 2012.

Liquidity and Financial Resources

As of December 31, 2012, the Group had short-term deposits and cash totaling RMB439.9 million, compared with RMB432.2 million as of December 31, 2011.

In 2012, net cash flow from operating activities was RMB199.4 million, net cash used in investing activities was RMB23.3 million, net cash used in financing activities was RMB168.0 million. The Group had a net increase in cash and cash equivalents of RMB8.1 million for the year 2012.

In 2011, net cash flow from operating activities was RMB218.2 million, net cash used in investing activities was RMB84.7 million, net cash used in financing activities was RMB134.5 million. The Group had a net increase in cash and cash equivalents of RMB168.4 million for the year 2011.

The Company had no external debt as of December 31, 2012 and 2011.

Business Outlook

Looking ahead, the Group will continue to adapt to current trends and technologies in order to ensure that it is keeping up with the changing needs of its operating environment. In view of the government’s policy on expanding domestic consumption through urbanization in the coming years, and the continual growth of the online advertising market, the Group is confident that the potential for future business opportunities remains strong. The Group is devoted to enhancing and developing the content on its existing vertical portals, and to improving its brand recognition in order to strengthen competitiveness and provide business growth potential. The Group will also continue to invest in mobile applications, with the aim of enhancing long-term shareholder value.

Conference Call

Management will host a conference call to discuss the results at 9:00 AM Hong Kong time on March 27, 2013 (9:00 PM Eastern Daylight Time on Tuesday, March 26, 2013). Mr. Lam Wai Yan , Chairman and CEO, and Mr. Wang Ta-Hsing , Chief Financial Officer, will discuss the results and take questions following the prepared remarks.

The dial-in details for the live conference call are as follows:

– Hong Kong Toll Free Number:
+852 3027 5500

– Mainland China Toll Free Number:
8008 0361 03

– U.S. Toll Free Number:
+1 866 978 9970

– International dial-in number:
+852 3027 5500
Passcode: 928856 #

A live and archived webcast of the conference call will be available on the investor relations section of the Group’s website at: http://corp.pconline.com.cn.

A telephone replay of the call will be available for thirty days after the conclusion of the conference call. The dial-in details for the replay are as follows:

– Hong Kong Number
+852 3027 5520

– U.S. Toll Free Number:
+1 866 753 0743

– International dial-in number:
+852 3005 5520
Passcode: 149653 #

About Pacific Online Ltd. (corp.pconline.com.cn)

Pacific Online is one of the leading Internet content providers in the PRC in terms of total advertising revenue. The Company operates six vertically-integrated portals, which, according to industry practice, are portals that focus on specific content. Among the Company’s portals are PConline, one of the largest portals in the PRC specializing in IT product-related content, and PCauto, one of the largest portals in the PRC specializing in automobile-related content.

Safe Harbor Statement

This press release contains forward-looking statements which are subject to risks and uncertainties. Actual results may differ from those discussed in the press release. In addition, any projections about the Company’s future performance represent management’s estimates as of today March 26, 2013. The Company assumes no obligation to update these projections in the future as business and market conditions change.

For further information, please contact:

Pacific Online Ltd.

Hudson Wong
Company Secretary
Tel: +852 2121 0634
Email: hudson.wong@pconline.com.cn

Christensen Investor Relations

Tip Fleming
Tel: +852-9212-0684
Email: tfleming@christensenir.com

For the full financial statements, please visit the Group’s website at corp.pconline.com.cn

SOURCE Pacific Online Ltd.

160 SOEs disclose executive pay

More than 160 State-run companies in Jing’an district have started to disclose the salaries of high-level executives to their employees, the Laodong Daily reported.

The government-sponsored disclosure is part of an effort to narrow the salary gap between executives and rank-and-file employees, and increase transparency at State-run enterprises.

The measure applies to anyone at the companies who receives an annual salary, including board members and top-level managers, said Lu Yanghong, a senior director from the Jing’an District Labor Union. The companies will tell employees about the salaries through their employee congresses.

Several government agencies, including the discipline inspection and State-run assets authorities ordered the companies to make the disclosure, Lu said.

Lu called Jing’an district a pioneer in executive pay disclosure. “No other district in Shanghai has made such a large step,” he told the Global Times.

Asking the State-run enterprises to expose executive pay could push them to increase the salaries of ordinary employees in an effort to head off complaints about a salary gap, Lu said. “There will be complaints if a senior manager is making 500,000 yuan ($80,492) while an ordinary employee is getting 20,000 yuan a year,” Lu said.

When asked whether companies will disclose other executive benefits, such as payment cards, Lu said that few companies provide executives with payment cards these days. He did not address any of the other perks executives have received in the past.

About 99 percent of the State-run companies in Jing’an district have already started to make the disclosures, Lu said.

Chinese salaries set to increase in 2013

It appears that salaries in China will be getting a boost in 2013 due to a steady growth in gross domestic product, according to London-based recruitment consultancy Robert Walters Plc.

In general, workers who chose to switch jobs will see their salaries increase by 15 to 25%, according to a survey conducted by the company. Those who are riding it out in jobs they already have will only see salary increases of approximately 8%.

In a report published in January by Global Times, business owners expressed concern about raising salaries. According to Feng Lijuan, chief consultant at 51job.com, a NASDAQ-listed human resources service provider, “Business owners are more concerned about a salary hike in 2013, as most of them have seen a worsening business performance, and feel uncertainty about whether the Chinese economy will get better this year.” In the fourth quarter of 2012, approximately 65% of small to medium size businesses didn’t increase salaries of their employees. This was an attempt to survive slow economic times by limiting labor costs.

The banking and financial services industries have felt the greatest impact from the global economic recession. This sector faced the challenge of trying to increase profitability and hire sales professionals, while simultaneously minimizing expenditures.

However, as China’s economy stabilizes, multinational banks are becoming increasingly interested in exploring areas of China beyond the traditional financial centers of Shanghai and Beijing. Such corporations are looking for employees with knowledge of the broader Chinese market.

According to Arthur Wang, managing director of Robert Walters China, “Candidates who could develop strong relationships with local clientele and possessed both overseas and local experience were particularly sought after and generally received average salary increases of 10 to 20 percent when moving jobs. Meanwhile, as Chinese financial institutions continue to increase their presence within the local market, we expect to see continued demand for local candidates with Mandarin skills.”

China’s Alibaba Names Jonathan Lu as Next CEO

HONG KONG—Alibaba Group Holding Ltd. named Jonathan Lu to succeed founder Jack Ma as chief executive amid growing expectations that the Chinese e-commerce company is gearing up for a potential multibillion-dollar initial public offering.

The company portrayed Mr. Lu as a Mr. Fix It—an experienced manager put in place to run Alibaba’s growing operations. Alibaba on its website emphasized Mr. Lu’s operational abilities and said he “shuns the spotlight,” putting him in contrast with Mr. Ma, who long has been an outsize figure on China’s Internet scene. Though Mr. Ma has been stepping back from the day-to-day operations of Alibaba over the past year, many analysts expect him to maintain a strong influence over the company’s strategic direction.

Mr. Lu’s background as an executive vice president running important Alibaba units will be put to the test in his new role. The company faces increasing challenges from logistical complexities and competition from companies such as Beijing Jingdong Century Trading Co., which runs the 360buy.com site. Bankers say Alibaba is likely contemplating an IPO as early as this year, although the company hasn’t specified a time.

One of the tasks for Mr. Lu will be to make use of the massive amounts of data Alibaba collects on transactions and users. He also will need to expand beyond Alibaba’s command of e-commerce via personal computers to attract China’s growing number of smartphone users to the company’s mobile services.

“Serving as Alibaba Group CEO is an extremely challenging and difficult job, especially succeeding a founder CEO like me,” Mr. Ma said in an email to employees Monday. “Jonathan has impressed with his curiosity and ability to grasp new ideas, his judgment and decisiveness, and his strong execution capabilities.”

Alibaba said Mr. Lu, who takes his new position May 10, wasn’t available for comment.

Alibaba said in January that Mr. Ma, 48 years old, would step down as day-to-day chief of the company he founded but would remain chairman. With no background in business or technology, the former English teacher founded from his apartment in 1999 what is now China’s largest e-commerce company by sales. The Hangzhou-based company has more than 23,000 employees.

Last year the company took private Alibaba.com, which had been listed on the Hong Kong Stock Exchange, in a move that many analysts saw as a way to consolidate control ahead of a group IPO. Alibaba Group in May struck a roughly $7 billion deal to buy back around half of Yahoo Inc.’s YHOO +1.75% 40% stake in the group. The agreement created an incentive for Alibaba to list its shares before December 2015.

Mr. Lu, 43, has been the group’s chief data officer since last year, overseeing the company’s Aliyun smartphone operating software, a source of conflict with U.S.-based Google Inc. GOOG -0.12% When Taiwanese PC maker Acer Inc. 2353.TW 0.00% tried to introduce a smartphone using Aliyun last year, the U.S. company objected, saying that Alibaba created its system by making changes to Google’s Android operating system. Alibaba disputed Google’s allegation, though the phone wasn’t released.

Mr. Lu’s appointment comes as Alibaba has taken steps in the past year to streamline management of the company. Alibaba in January unveiled a reorganization that aimed to boost efficiency and give more independence to business units.

“With this appointment, Jack will be freed up to focus on maintaining the company’s good relationship with the government,” said Duncan Clark, chairman of BDA China, an investment advisory firm specializing in the Internet and e-commerce. He said Alibaba needs to ensure that the government won’t raise issues with the dominant market share held by Alibaba’s Taobao and Tmall shopping sites.

Taobao accounts for the vast majority of transactions among Chinese online shopping sites, similar to eBay Inc.’s EBAY +0.66% site, that cater largely to small merchants, mostly offering inexpensive, nonbranded goods and novelties. Tmall hosts online storefronts for branded products, including for U.S.-based Gap Inc. GPS +0.68% Taobao and Tmall last year surpassed one trillion yuan, or roughly $160 billion, in transactions, from which the sites generated revenue from advertising, services and commissions, the company said.

In the past decade, Alibaba took market share from eBay’s Chinese unit, mainly by undercutting the U.S.-based company on commissions. Ebay largely withdrew from China in 2006.

Tech and execs see least talent movement in China

China’s technical workers in IT and engineering roles saw the lowest rate of people changing jobs in 2012 of any business function, at 18% and 24% respectively, followed by board-level staff at 27%.

The highest degree of movement was seen in government affairs (55%), construction (50%) and production (42%), according to Chinese recruitment firm RMG Selection.

A survey from the company of 2,000 Chinese workers shows that for 2013, 61% of IT workers have a greater desire to change jobs. Engineers (52%) were also seeing renewed keenness to move, as were production workers (57%) and supply chain professionals (52%).

Multinationals flock to Shanghai

Multinational companies continue to set up China and Asia-Pacific regional headquarters in Shanghai, according to the city’s Municipal Commission of Commerce.

The commission reported that by the end of 2012, 403 multinationals had established regional headquarters in Shanghai, 95 of which serve as both China and Asia-Pacific headquarters.

“We were aware of this trend as early as 2000, when we entered the China market, but it has clearly increased in the past two years,” said Sergio Picarelli, chief sales officer and member of the Executive Committee of Adecco Group.

He added: “A lot of companies are moving from Singapore or Hong Kong or directly setting up their headquarters for Asia Pacific in Shanghai. It will probably further increase in the next five years.”

In Picarelli’s view, Shanghai is China’s foremost commercial hub and a key center for logistics, making it an ideal city for a multinational firm to base its China operations.

A joint venture may give a multinational company an edge in the China market, such as in the case of the Adecco Group, Picarelli said.

“Globally Adecco works with over 100,000 clients every day. Many of them are very interested in the opportunities offered by the Chinese market and want to fully understand the HR situation on the ground here. We can support them with our local know-how and our full range of services,” he said.

Adecco has created an expert team and offers a special platform that supports multinational companies exploring the Chinese and Asia-Pacific markets as well as assisting Chinese firms going overseas.

“Outbound Chinese companies will have the same difficulties that multinational companies have when they come to China. They have to discover a new world and a new way of doing business,” Picarelli said.

“We support them in their efforts to recruit good people. Once you have good people, you have a good organization,” he said.