Grant Thornton recently launched their 2016 Tou Ying Tracker, the 4th annual such report. This far-reaching review is an excellent example of how UK professional service firms can reach into China and maintain a long term relationship with the Chinese business and political community.

Headline figures show Chinese characteristics

On first reviewing the report, a number of points jump out that reflect Chinese culture and approach to business:

1. Dynamic change: compared to the previous year's report, majority of entries are new to the list. In fact, the emergence of new players in Chinese business is something you have to be prepared to accept. Away from the major established players, it only takes a few years for new firms to enter a market then take a significant market share from a standing start. Identifying these firms in your own industry can be hard so this is where firms such as Grant Thornton with "boots on the ground" and China Investors Club with long standing partnerships in China can be of help.
2. Equality: well maybe not quite where we need to be however Chinese firms in the Tou Ying tracker have a significantly higher proportion of female Board Executives than the average FTSE250 firm. Working in China you are sure to find an even split of firms led by female entrepreneurs at all levels of industry. 
3. Timing: according to GT, 30% of the firms included in the report were late filing their annual returns. Corporate governance remains significantly weaker than in the UK driven by the level of trust extended to both government and the private business community. In addition, the origin and relatively recent generation of wealth combined with speed of growth means that many private firms have to work hard to play catch-up on their paperwork. Evidence of this was nowhere more apparent than with the flurry of AIM listings 5-8years ago that has led to today's questionable environment for future Chinese listings in this market.

Outlook for 2017

The Year of the Monkey that we just waved goodbye to was characterised by seemingly random and excessively energetic events, most noticeable of course was Brexit and Trump. As we enter the Year of the Fire Rooster, observant, hardworking and resourceful are the characteristics we should look out for. Interestingly after Davos 2017, China emerged as the super power voice of reason. As such we believe 2017 will reflect the Rooster's nature and see China consolidate its position on the world's business stage. For UK firms seeking to join this journey then now is a good time to explore these markets.