Archives 2013

Plight of Chinese hawkers highlights impact of downturn

Every year the scorching Chinese summer brings throngs of unlicensed vendors out on to the streets, hawking everything from pirated DVDs to watermelons.

Given their lowly and illegal status they are often treated poorly by the authorities, but this year has been particularly bloody for this army of mobile shopkeepers.

Two weeks ago, Deng Zhengjia, a 56-year-old watermelon vendor, was killed and his wife knocked unconscious after they were attacked by the local “chengguan” – an auxiliary police force tasked with keeping city streets clean and orderly.
Since then there have been a dozen similar incidents reported across China in which “melon-peasants” (as they are referred to in Chinese), street hawkers, journalists and even police officers have been beaten up by locally-employed chengguan.

Chengguan brutality is not new, but experts say rising unemployment, particularly in the low-end export-orientated manufacturing sector, is driving up the number of vendors and prompting many more confrontations on the streets.

“The economic downturn has caused an increase in the unemployed and low-income populations and they have to return to the labour market which inevitably increases the conflict between chengguan and street vendors,” says Qiu Jianxin, an expert on the chengguan at Nanjing Aeronautics and Astronautics University.

Official Chinese unemployment data are virtually meaningless as they do not count the country’s hundreds of millions of migrant workers. According to a government manufacturing sector survey published on Thursday, however, employment in the sector has contracted for 13 months. A separate survey published by HSBC showed that the number of workers in the manufacturing sector shrank in July at its fastest pace since March 2009, with expectations of further job cuts.

The government has said 7.25m jobs were created in the first half of the year. But another survey from the Ministry of Human Resources and Social Security found that the number of new urban jobs fell by 5.7 per cent in the second quarter from the same period a year earlier.

“The employment situation is weakening in China,” says Zhu Haibin, chief China economist for JPMorgan. “The service sector is creating some jobs to hold up the overall labour market conditions but low-skilled manufacturing employment is particularly weak.”

A researcher at a government think-tank, who asked for anonymity, estimated that in some export-orientated manufacturing zones in south China one-third of migrant workers were still employed in factories, another third had switched to employment in the services sector while the final third had returned home to the countryside.

This balancing effect means China has not yet seen widespread net lay-offs despite three years of steadily slowing growth – from almost 12 per cent expansion in early 2010 to 7.5 per cent growth in the second quarter this year.

Without the pressure of massive unemployment the government has been unwilling to launch a major stimulus package to boost the economy as it did in late 2008 in the face of the global financial crisis. But the overall employment figures disguise the shifts that are occurring in the labour market and the potential dangers for China’s stability-obsessed government.

As news of Deng’s death in central China spread on social media, it caused outrage throughout the nation that was even expressed in official media outlets.

Local government officials in charge of the chengguan initially claimed he had “suddenly fallen to the ground and died”. But Beijing soon ordered the arrest of the officers involved and arranged for his family to receive a large payout.

“The government paid off the family quickly to shut them up because they are very worried this incident could spark wider protest or some sort of popular movement,” says Yang Jisheng, deputy editor at the reformist magazine Yanhuang Chunqiu.

Apart from there being fewer available jobs in the manufacturing sector there is also a mismatch between the jobs available and the skills and ambitions of those entering the workforce.

“There are studies that show a connection between unemployment and the number of street vendors in China,” says Ye Tan, a popular columnist who has written extensively about the chengguan. “But for many vendors the problem is not that they can’t find a job, but that they are unwilling to work long hours in high-risk manufacturing jobs.”

Because street vending is the main source of income for many of these migrants, the stakes are high when they are caught by chengguan, who regularly confiscate all of their wares and income. The chengguan often ask for protection money from vendors and regularly conduct street raids that can sometimes turn violent.

Just one day after Deng was killed, another melon vendor in northeast China was beaten up by chengguan in his city, in an incident that was captured on camera phones by witnesses. The footage was replayed by a regional state-controlled TV station whose journalists were themselves attacked by chengguan on camera when they went to the chengguan’s offices to check the facts of the case.

A week later, a police officer was reportedly beaten and had his pistol grabbed by a group of chengguan in western China after he was called to an incident in which the chengguan were attacking people.

China’s high employment levels: adapting their workforce to a fast-changing market

China’s quickly evolving job market is booming and the results of Antal’s 2013 Q2 employment survey on various companies reflect an intent on increasing work efficiency and discovering fresh talent.

In the latest ‘Global Snapshot’ survey, 10,000 organisations in Europe, Africa, India, China and the USA were asked whether they were currently hiring or firing at professional and managerial level.

The survey then went on to identify if businesses planned to do so in the coming quarter.

The results for China were very positive, with a massive 75 per cent of Chinese employers recruiting or replacing staff at senior levels this quarter and 74 per cent planning to hire next quarter, in stark contrast to only 54 per cent expecting to hire in the Q1 edition of the survey.

This demonstrates a significant increase in hiring confidence for replacement and growth positions, as employers clearly defined their intentions and goals for the year.

However, with such an active recruitment market, there was also an increase in the number of companies firing employees.

Consistently high recruitment growth combined with increased labour costs has made employee performance as important as ever, and subsequently replacement recruitment is increasing.

During this quarter, the number of businesses firing staff rose from 14 per cent to 26 per cent, and the numbers are expected to continue increasing over the next three months.

On average, they remain 5 per cent higher than that of APAC. However, this should only be considered in tandem with similarly high hiring levels.

According to James Darlington, head of Asia at Antal International, “there is an increase in cautiousness among job seekers and employers which, together with a changing economy and the necessity for more adapted profiles, explains high recruitment and lay-off rates.”

In a globally stabilised job market, employers prefer higher quality talent, rather than higher quantities.

Furthermore, in many multinational corporations (MNCs), the repatriation of foreigners holding management positions is a significant phenomenon, and many businesses have not found local replacements yet, meaning employee quality is of the utmost importance.

Notably, some industries are booming, while others are lagging behind. The nationwide salary increase over the last two years has led to higher disposable incomes, with the performance of consumer-led sectors having benefited the most.

According to the survey, this quarter’s hiring champions were as follows: the automotive industry (92 per cent), retail & luxury goods (91 per cent), and health care (88 per cent).

Interestingly, the health care industry plans to fire 27 per cent of its employees this quarter, followed by the automotive industry (20 per cent) and luxury goods (8 per cent).

Clearly, specialists in these fields are highly sought after in the country. Demand in these areas is expected to remain high, with sales and marketing, IT and accounting, and R&D being the most demanded positions.

The automotive and aerospace industry “needs specific technical profiles who are bilingual in English” as well as “[a] high level [of] experienced sales talent, professionals with innovative views of the market and marketing experts with challenging and international vision”.

In the luxury good industry, “employers attach great importance to English skills compared to other professional skills” as many youth brands are booming in Beijing and Shanghai.

Due to a growing economy and “more products [are] produced to satisfy people’s daily lives”, the health care industry is “hiring more staff to support business expansion and the influx of foreign companies [into] China.”

As disposable income continues to rise, it is natural for auto and retail industries to continue performing strongly.

This, combined with persistent stagnancy in European markets, means that the major players in these industries will continue focusing their attention on China, thus leading to potentially increased hiring.

The survey reflects accurately what we see and hear from our clients on a daily basis. The talent war in China is continuing to heat up, with many companies prepared to break budgets or head count freezes to hire top level talent.

However, as the market gains in maturity, both employers and candidates are expected to put more emphasis on training and development rather than salary when negotiating a package.

As the world’s second largest economy and a quickly developing labour market, China is now hiring fewer, but “better” people, with HR managers having a clearer vision of their demands for this year and higher expectations on the talents that will drive their business into this challenging but formidable market.

Huawei ups pay for entry-level staff

Summary: Chinese networking giant increases paychecks of lower-level employees by 30 percent, putting it in an even better position–against local rival ZTE–to recruit new talents.

Huawei has increased the pay package of its Level 13 to 14 employees, main entry- low-level staff, by an average 30 percent, with some getting more than a 70 percent salary hike next month.

According to a NetEase report Friday, which cited Chinese newspaper Southern Metropolis Daily, the salary increase would depend on the employees’ work experience and individual performance, and will be effective in the company’s August payroll.

Starting salaries for newly grads also have been increased significantly. Previously, pre-tax salaries for fresh grads postgraduate students in Huawei were 6,000 yuan (US$979) and 8,000 yuan (US$1,305) per month, respectively. From August, starting salaries, before tax, have been lifted to 8,000 to 9,000 yuan (US$1,305 to US$1,468) per month for newly undergraduate students, and 10,000 yuan (US$1,631) for postgraduate degrees.

Huawei will spend over 1 billion yuan (US$162 million) to support the salary increases, the report added.

A Wall Street Journal report said in 2012 entry-level salaries of 69 percent of Chinese college graduates were lower than 2,200 yuan ($359) a month, while graduates from lower-level universities earned an average of only 1,903 yuan (US$310) a month. Huawei’s basic salaries for fresh graduates are substantially higher than the market average.

In the past, employees in Huawei earned about 10 to 15 percent higher salary than their peers holding similar positions in rival ZTE. After the latest round of salary increase, Huawei will have a upper hand recruiting new talents in the future.

The company is also known for its generosity to employees. In 2010, when Huawei’s sales revenue reached 182.5 billion yuan (US$29.57 billion) with a record-high net profit of 30.6 billion yuan (US$4.96 billion), the Chinese networking equipment manufacturer implemented a 11.4 percent salary increase for its staff. Stock dividends also hit a historical record of 2.98 yuan (US$0.48) per share at that time.

HR company highlights top employers

More than 150 government officials and representatives of the business community gathered in Beijing on Friday for the 11th ChinaHR Best Employers Award Ceremony.

The event was organized by ChinaHR.com, a leading Chinese recruitment website, with the aim of highlighting the 50 most popular employers in China, based on a recent survey conducted by the company.

According to the survey results, the five most popular employers are China Mobile Communication Company Ltd, Bank of China Ltd, Baidu Inc, Lenovo Group Ltd and Microsoft China Co Ltd.

The survey polled more than 100,000 employees and university students looking for work, and asked people to identify their preferred employer, industry and location, and whether they preferred private or public sector employers. Specific rankings in 16 industries, including hotels and restaurants, construction, education and culture, were also given.

The list of 50 most popular companies reflected preferences for jobs in finance, the Internet, real estate, communications, and energy and chemical resources.

About 30 percent of the companies on the list are in finance and the Internet. The financial sector is seen as being well paid, while Web-based companies are seen as developing steadily and providing a good service to customers.

In a break with previous years, 30 percent of the top 50 employers are State-owned enterprises. More than half of the surveyed university students would prefer to work in government departments, institutions and State-owned enterprises because these jobs are considered more stable.

Among university students hunting for a job, 15 percent are aiming to work in Beijing, with 5.1 percent preferring Shanghai and 1.7 percent targeting Guangzhou. The percentage of university students willing to work in the three cities is less than in 2012, but Beijing is still the most appealing of all locations.

“The survey is a perfect platform for job-seekers and employers to find excellent employers and to present the strength and culture of the enterprises. Therefore, there will be perfect matches between the two parties,” says Ciaran Lally, CEO of ChinaHR.com.

“It’s incredible how China’s economy had continued to grow in the past few years. Online recruitment in China is promising, so we see huge opportunities in China,” says Leslie Buckley, chairman of Dublin-based Saongroup, which acquired ChinaHR.com in February.

Lally points out that micro blogs are a very useful tool in recruitment because job seekers and employers can exchange information in a meaningful way.

“Online is becoming more and more dominant as a way to search for and find a job in the world. In recent years, as there are so many jobs online, we moved from the phase of searching for a job to trying to find the right job. ChinaHR allows the companies to use our technology to make the right decision,” Lally says.

Employment outlook weak

Job supply falls as gdp growth slows, say experts

Chinese employers’ hiring intentions will weaken in the second half of 2013 but the employment rate is not a problem yet in China, human resources agencies say.

“China’s net employment outlook slipped to its weakest level since the first quarter of 2010 after employer hiring plans fell in all industry sectors and all regions,” Manpower Group, a global workforce provider, says in its employment outlook survey for the third quarter of 2013.

The firm uses its net employment outlook to describe employers’ hiring intentions.

The Chinese mainland’s net employment outlook is 12 percent in the third quarter of 2013, declining by 5 percentage points compared with the same period of 2012, Manpower says in its report.

Statistics from the survey show that 14 percent of the employers expect to increase payrolls in the third quarter, 2 percent anticipate a decrease and 45 percent forecast no change.

Zhaopin.com, one of China’s largest providers of human resource services, says recruitment growth in the first half of 2013 was 20 percent, falling by 6 percentage points compared with 2012.

The job supply is related to the country’s gross domestic product growth, so as China’s GDP growth slows down, so does employment, experts says.

Some institutions have different opinions on China’s GDP growth in the second half of the year. Nomura Securities, the most pessimistic, forecast a 30 percent possibility that China’s GDP growth will fall below 7 percent in the second half of the year.

However, China’s employment market is still steady because the workforce supply is declining alongside falling demand.

“China’s employment market will be steady in the short term because China’s working-age population is also reducing,” says Du Yang, a professor with the institute of population and labor economics at China Academy of Social Sciences.

Statistics from the National Bureau of Statistics show the working-age population in the mainland fell by 3.45 million in 2012 compared with the end of 2011.

There is a risk that if economic growth keeps slowing down, the human resource costs will rise and then the labor-intensive enterprises will be under heavy pressure running their businesses, Du says, adding it will lead to job cuts.

Economic transition is a fundamental solution to making sure new technology-intensive and capital-intensive enterprises will offer job opportunities after labor-intensive businesses are eliminated.

This year’s graduate employment is a result of unrealized economic transition, Du says.

College graduates with higher technology skills can meet the demand to improve productivity but there are not enough jobs for them because labor-intensive enterprises still account for the main part of the economy, he says.

On the other hand, the employment in different industries reveals contrasting situations.

“The real economy reflects obviously whether the economic development is healthy, which means secondary industry is affected most by macroeconomic growth,” says Hao Jian, chief consultant at Zhaopin.com.

Manpower’s report also shows that hiring intentions will weaken in the finance, insurance and real estate sectors with a 20 percentage point decline year-on-year in the third quarter of 2013. Mining and construction sectors will suffer an 11 percentage point year-on-year fall.

“Much of the (employment) weakness stems from considerable declines in China’s finance and construction sectors,” Manpower says in its report.

Recruitment in the telecommunication, consulting and information technology sectors will increase slowly this year compared with 2012, Hao says.

Tertiary industry will contribute more to the employment market. Urbanization is good news for job opportunities in tertiary industries.

Job growth in healthcare, retailing and luxury goods sectors will keep going up, Hao says, although these are not main sectors in the employment market traditionally.

Some human resources management companies have moved their businesses to the rising industries.

“Antal has conducted business in the consumer goods and service-related sector since two years ago,” says James Darlington, head of Asia at Antal International, a United Kingdom recruitment and training consultancy.

He says it is easier for the consumer-related industries to cover the rising cost of human resources in China.

Employment in the third quarter will remain very strong in the sectors, Darlington says. July could be the firm’s best month this year in terms of recruitment numbers.

The fourth quarter may have some seasonal slowdown but the majority of its clients in consumer-related industries are still very optimistic about the job market, he adds.

Top foreign brands in China revealed

BEIJING: Major global companies are increasingly heading to China in a bid to boost sales among the nation’s burgeoning middle class, with growth remaining sluggish in Europe and North America.

Market research company Millward Brown identified the top 20 foreign brands in China for a BBC report, and the UK broadcaster has analysed why they have been success stories.

Millward Brown found that 13 of the top 20 brands are from the US, two each from Germany and France, one from Italy, one was the Anglo-Dutch consumer giant Unilever, while the South Korean electronics firm Samsung was the only Asian brand to make the list.

KFC, the US food group, topped the list, followed by Procter & Gamble’s Pampers babywear brand and Colgate Palmolive’s Colgate toothpaste, while Apple was the leading technology brand at No6.

Unilever’s Omo laundry product and French retailer Carrefour were the only non-US entrants in the top ten, at eight and 10 respectively.

Millward Brown’s study found that opportunities for foreign companies are rising rapidly in China, as consumers move away from purchasing by price and trust in Chinese brands rapidly falls away.

For McDonalds, the US drinks giant, the key to Chinese success is to “work with changing social attitudes and continuous aspirational trade-ups,” while Unilever carried out extensive consumer research before entering the market with Omo.

The opportunities for successful companies are immense, with KFC planning to add another 700 outlets to its estate of 4,400 restaurants in 850 cities this year, while McDonald’s is opening 10 new restaurants a week and Coca-Cola is to invest $4bn to expand, the BBC reported.

Outside the food and drink market Apple is to double its outlets in China, while Volkswagen, the German carmaker has seven new production plants in preparation to cater for its biggest market, with China representing a third of all its sales.

Understanding micro-markets is also important, and L’Oreal and Samsung told the BBC that they tailor their approach to different regions of China.

All the companies said that the key to their success is to recruit local talent and engage in joint ventures with local parties to better understand the consumer.

Chinese Game Developer Quits Job, Sells Street Food, Doubles His Salary

With the potential to make a lot of money as a developer, especially since it is pretty easy these days to create your own app for mobile devices, we’re sure that there are many kids out there whose dream is to one day become a developer of software and games. However in China it is a different story as developers are typically referred to as “Ma Nong”, or number crunchers if you’d rather, since their job involves very long hours and apparently very little pay. Interestingly it seems that over in China, one developer has had enough of the long hours and bad pay, and when he quit his job, he decided at the urging of his girlfriend to start selling street food known as “shaobing”, a type of flatbread.

While it was a means to an end, it turned out that his endeavor proved to be more profitable than he had imagined and according to a report on Tencent, the developer (or ex-developer) now pulls in about $3,259 a month, which is reportedly double that of what he used to make as a developer! Of course $3,259 might not seem like a lot of money stateside, but over in China it is a pretty big deal. This by no means reflects the type of pay that all developers receive, since some employers can be fair while others can be quite stingy, it is an interesting twist on things.

GlaxoSmithKline admits some staff in China involved in bribery

GlaxoSmithKline has admitted that some of its senior Chinese executives broke the law in a £320m cash and sexual favours bribery scandal.

Abbas Hussain, the drug maker’s head of emerging markets who was dispatched to Shanghai to oversee the crisis, apologised to the Chinese authorities and promised the company was taking the charges “extremely seriously”.

“Certain senior executives of GSK China who know our systems well appear to have acted outside of our processes and controls which breaches Chinese law,” Hussain, the brother of England cricketer Nasser Hussain, said on Monday. “We have zero tolerance for any behaviour of this nature.”

Hussain’s apology and admission comes a month after Britain’s biggest drug company said a four-month internal investigation had found “no evidence of corruption or bribery in our China business”.

The Chinese public security ministry welcomed Hussain’s apology and issued a fresh statement saying GSK’s executives “violated China’s laws and damaged markets by engaging in bribery to raise drug prices, expand sales and reap inappropriate profits”.

Andrew Witty, GSK’s chief executive, who was paid £3.9m last year, will repeat the apology on Wednesday when the company announces its half-year results.

The Chinese authorities have arrested four senior Chinese GSK executives as part of the investigation into claims that doctors were bribed with cash and sexual favours in return for prescribing GSK’s drugs.

One of the arrested executives has confessed to the allegations on Chinese state television from what appeared to be his detention cell.

GSK China’s British finance director, Steve Nechelput, has been prevented from leaving the country. The leading Chinese investigator has raised questions over why Mark Reilly, the UK head of GSK’s Chinese operations, left China for Britain just before the charges were announced and has not returned. GSK said Reilly is not scheduled to return to China.

Chinese police have also detained Peter Humphrey, a British private investigator who has worked with GSK in the past. Humphrey, founder and managing director of risk advisory and investigations firm ChinaWhys, was arrested in Shanghai on 10 July.

The ChinaWhys website boasts: “Combining detective skills with our understanding of business operations and financial management, we assist multinationals to prevent, detect or investigate fraud, employee corruption or other white-collar crime to protect their bottom line, reputation and regulatory integrity, as well as providing support for dispute resolution and other business crises.”

GSK has a long history of problems in China, and conducts up to 20 internal audits in the country every year. Last year more than a sixth of the 312 staff it sacked worldwide for breaching policy violations were in China. China accounts for just 3% of GSK’s £27bn annual sales.

A GSK spokesman said Humphrey was “never a GSK employee”, but refused to say whether or not it had contracted Humphrey, who has previously worked for corporate investigations firm Kroll.

The Foreign and Commonwealth Office (FCO) said it was aware of Humphrey’s arrest and said diplomats are providing consular assistance to the family.

Hussein said GSK shared the Chinese authorities’ desire to “root out corruption wherever it exists” and said the company would “take all necessary actions required as this investigation progresses”. GSK is also regularly briefing the Serious Fraud Office (SFO) in London.

GSK also promised to radically change its business model and pass on the savings to Chinese consumers by reducing drug prices. One of the arrested GSK executives, Hong Liang, told Chinese state TV last week that bribes paid to doctors and officials pushed up the prices Chinese patients pay for GSK drugs by as much as 30%.

The Chinese investigation appears to have widened to other western pharmaceutical companies. AstraZeneca said [on Mondayits Shanghai office was raided by police and one employee was detained for questioning. Belgian drug company UCB has also been visited by the police.

GSK last year paid a $3bn (£1.9bn) fine in the US to settle claims that it tricked and bribed doctors into prescribing dangerous antidepressants to children.

GlaxoSmithKline’s China network caught in massive bribery scandal

Hong Kong (CNN) — An investigation by Chinese authorities into the activities of GlaxoSmithKline has allegedly turned up a bribery network that involves government officials, doctors, hospitals and at least 700 travel agencies.

The U.K.-based GlaxoSmithKline, one of the world’s largest vaccine makers, is now attempting to distance itself from its China arm — which has been accused of using hundreds of millions of dollars in bribes to encourage the use of GSK products and artificially boost prices.

As Chinese authorities and GlaxoSmithKline reveal new information, here is an overview of the probe, the parties involved and the potential penalties.

What is GlaxoSmithKline?

Pharmaceutical giant accused of bribery GlaxoSmithKline probe could widen Pharmaceutical giant accused of bribery
GlaxoSmithKline, headquartered in London, is one of the largest pharmaceutical companies in the world. The firm is known for its wide range of over-the-counter and prescription medicines and vaccines including its popular anti-depressant Paxil and diabetes drug Avandia.

GSK, as the company is also known, says it employs some 97,000 people in more than 100 countries.

In the last fiscal year, GSK reported more than $11.5 billion in pre-tax profits and ranked #231 on the Fortune Global 500.

What are the accusations?

On July 11, China’s national police agency accused GlaxoSmithKline of bribing government and medical officials in some of China’s biggest cities — including the country’s financial hub of Shanghai and Hunan’s provincial capital Changsha — to encourage the use of GSK medicines and to push prices higher.

The bribes totaled nearly half a billion dollars, according to media reports.

On July 22, GSK executive Abbas Hussain admitted that some of the company’s senior executives in China appeared to have violated the law. Hussain, the company’s president of Europe, Japan, emerging markets and Asia-Pacific, had been dispatched to China to contain fallout from the alleged scandal.

On July 24, China’s state media reported that 39 hospital workers were being punished for taking more than $450,000 in kickbacks from pharmaceutical firms over a three-year period.

Nine of the doctors involved had been suspended or had their licenses revoked, and a case involving a trade union official was referred to the judicial system.

Who has been caught up in the scandal?

Chinese authorities have barred GSK China’s Vice President for Finance, British national Steve Nechelput, from leaving the country since late June. At least four Chinese executives have also been detained.

Chinese state media have identified these executives as Vice-President of GSK China’s investment company Liang Hong, Vice-President and human resources director Zhang Guowei, GSK China’s legal affairs director Zhao Hongyan and the company’s business development manager Huang Hong.

Chinese state television also broadcast an apparent confession by Liang Hong. It is unclear whether his statement was made under force or duress.

Liang explained how conferences were faked in order for travel agencies to create receipts for services never performed. Funds were then used to pay off bribes encouraging the use of GSK products.

How have drug prices been affected in China?

In Liang Hong’s alleged confession aired on Chinese state television, the executive explained that the bribes could have encouraged corrupt government and medical officials to raise prices 20-30%.

Liang added the cost for medication would be substantially inflated by the time it reached patients.

How important is China to GSK?

In the company’s just-released second quarter earnings statement, GSK revealed net losses in Europe and Japan, with flat turnover in the United States in the first half of the year.

The only regional growth occurred in emerging markets and the Asia Pacific — of which China is core.

As China’s investigation into GSK expands, the firm’s profits from the crucial emerging growth market are expected to take a hit.

“Clearly, we are likely to see some impact to our performance in China as a result of the current investigation,” said GSK CEO Sir Andrew Witty, “but it is too early to quantify the extent of this.”

Sine the bribery allegations first surfaced, GSK’s share price has slumped 3.5% in London and 2.4% on the New York Stock Exchange.

What are the penalties if GSK is found guilty?

China’s investigation could expose the company to legal action in the U.K., and possibly the United States, under laws relating to the bribery of foreign public officials.

GlaxoSmithKline says it has informed the U.K.’s Serious Fraud Office about the bribery allegations but had not yet been asked to provide any further information. The agency, which investigates and prosecutes corruption cases, said last week that it could neither confirm nor deny an interest in the claims against GSK at this stage.

Chinese airline targets ‘Flight Aunties’ in recruitment drive

It seems that not only young and beautiful girls can make it into the competitive world of flight attending in China after all.

A recent move by Shanghai-based Spring Air, China’s biggest budget carrier, will give preference to hiring married women with kids, according to a Wall Street Journal report.

I think it’s good that the airline is doing this. It helps the dynamics of the crew because the older ones have more life experience, making them more mature and reliable, whereas the younger ones are more enthusiastic
These unusual conditions to hire what the airline terms ‘flight aunties’ points towards an attempt to diversify the profile of its 600-strong flight attendant workforce.

The public relations value of ‘flight aunties’ is significant, considering its departure from the airline’s controversial move earlier this year, when it dressed its flight attendants in coquettish maid uniforms.

It also goes against the greater trend amongst big Chinese state-owned carriers, which have hosted pageant-style competitions to choose new flight attendants.

Spring Air said that it is seeking college-educated females aged between 25 and 45, adding that those married with children are given top consideration. The previous age cap for new hires was 35.

Its decision follows the results of a recent survey on Weibo indicating that “72 per cent of internet users polled prefer to be served by experienced flight attendants.”

Wang Yan, a 36-year-old air hostess at Spring Air, is amongst the first batch of ‘flight aunties’ hired by Spring Air.

“I think it’s good that the airline is doing this,” she said. “It helps the dynamics of the crew because the older ones have more life experience, making them more mature and reliable, whereas the younger ones are more enthusiastic.”

The flight attending profession is considered prestigious, with thousands competing for coveted spots despite poor treatment, low pay, and gruelling conditions.