Online shopping provides way round China’s ban on giving gifts

Online shopping provides way round China’s ban on giving gifts

Hsieh Ai-chu and Staff Reporter

2013-09-21

Buying gifts through online shopping was popular in China during this year’s Mid-Autumn Festival as the country’s government prohibited the use of public funds to be spent on festival gifts. People’s Daily reported that the volume of gifts purchased with government money was down compared to previous years. Yet the practice, linked to the culture of giving face in order to consolidate influential relationships could not be fully curtailed as gift givers found ways to present their gifts in a more discreet manner.The online marketplace was such a way, as people purchasing gifts did not have to handle gifts or send items themselves.

The Chinese-language Beijing News reported that bypassing prohibitions on gifts was evident as many employees of express delivery companies were spotted in front of three government buildings in Beijing.

The report said gift-giving remains prevalent since building and maintaining personal connections is deeply ingrained in Chinese society, especially within government agencies.

Among the most popular gifts were Chinese mitten crabs from Yangcheng Lake in Jiangsu, a seasonal delicacy, as well as mooncakes and electronic gift cards. Some givers opted for electronic gift vouchers and sending account passwords to activate them.

Some e-commerce outlets meanwhile were happy to provide falsified invoices, according to reports.

Gifting cell phone credit was also a convenient means of offering an untraceable present.

Zhang Bin, a director at the Chinese Academy of Social Science, suggested the government promote the use of electronic invoices to enable tax departments and government agencies to perform cross comparisons on the content and prices of purchases to tighten the net on the practice.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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